The effect of ownership structure on market value: A case study for BIST-30

This study evaluates the effect of ownership structure on the market value of companies. Market value is considered the dependent variable, while ownership concentration, foreign ownership, and dispersed ownership are treated as independent variables. Additionally, control variables such as leverage and company size are included in this Thesis. The study analyzes data from 27 companies listed on Turkey's BIST-30 index for the periods of 2018 and 2023. The data analysis was performed using Stata software, utilizing numerical and secondary data. To reach a comprehensive results, the following analyses were performed: descriptive statistics, unit root test, and finally, analysis using the one-step system generalized method (GMM) model. The study's findings reveal that foreign ownership and ownership concentration do not significantly affect market value. However, the dispersed ownership demonstrates a significant negative influence on market value. An examination of control variables uncovered that financial leverage significantly and negatively influences market value, suggesting that increased leverage decreases company value. However, firm size exhibits a positive and significant relationship with market value, suggesting that larger companies tend to achieve higher market valuations. These findings highlight the importance of taking both leverage and company size into account as essential factors when assessing the market value of BIST-30 companies.