The relationship between equity ownership and firm value

This study describes the main characteristics of equity ownership structure of the 169 manufacturing industry companies on the Istanbul Stock Exchange (ISE) between 2002 ? 2006 years and examines the impact of equity ownership structure on the firm value by panel data analysis. It is determined that the manufacturing industry companies can be characterized as highly concentrated and the ultimate owners in the %60 of these corporations are holding companies. It?s known that in Turkey holding companies are controlled by the definite families or groups. Equity ownership structure is defined by two sub-variables: Ownership concentration and ownership identity. Our study shows that increasing in ownership concentration increases the market based value variables more than accounting based value variables. However, raising of going public rates resulted in decline in firm value. We conclude that, the most affecting identity on firm value variables in the all ownership identities is the firms which have a foreign partnership. In our study, the foreign partnership increases the firm value. On the other hand, it is determined that independent firms have negative influence on the firm value variables.