OWNERSHIP STRUCTURE AND FIRM GROWTH: A SYSTEMATIC LITERATURE REVIEW AND AVENUES FOR FUTURE RESEARCH

Abstract

Ownership structure is a key element of corporate governance that helps firms to better perform organizational activities and improve firm growth. Studies have been conducted to expand our understanding of the linkage of corporate ownership structure and firm growth; however, systematization of prior findings is needed to provide a more conclusive picture regarding the nature of the impact of ownership structure on firm growth. The present study used a systematic literature review (SLR) method to review the published research work related to the objectives of this study. It conducted a SLR of 20 selected research articles published in national and international journals from 2009 to 2024.  The review has identified that studies conducted on the relationship between ownership structure and firm growth had primarily classified ownership structure into different equity ownership. Prior literature mainly focused on particular ownership categories, namely state vs foreign ownership, family vs non-family ownership and ownership concentration when studying ownership structure in relation to firm growth.  The study found that firm growth was estimated mainly by the following three measures: asset growth, sales growth, and employment. Understanding the direction of the effect of different ownership structure variables on firm growth is important for academicians, policy makers, and shareholders. This study has made the evidence more accessible to policy and decision makers. The integrated findings of the study have provided a comprehensive knowledge of the direction of the influence of different ownership variables on firm growth.  The study also explores specific components of ownership structure that have been identified in prior research as the most important contributors to firm growth.