THE DEGREE OF ATOMICITY OF THE OWNERSHIP AND THE FIRM?S FINANCIAL PERFORMANCE - EVIDENCE FROM ROMANIA

This paper examines the impact of the degree of concentration of the ownership on the firm's financial performance for a sample of 2,000Romanian companies, in a time frame that range from 2009 to 2017. The effects of concentrated ownership on firm's performance is estimated using fixed effects model (FE), random effects model (RE) and a corrective model (PCSE) as methodology. The main results indicate the fact that between the financial performance, expressed by both indicators return on assets (ROA) and return on equity (ROE), and the variable which express the degree of ownership concentration is an inverse significant relationship. At the same time, other variables considered do not show significant differences in outcome: size, age, liquidity, leverage and tangibility negatively influence the financial performance of companies.