Ownership Concentration, Firm Risk taking and Performance: Evidence from Developing Economy of Pakistan

Ownership structure has a substantial impact on corporate decision-making and plays significant part in the governance framework. can accomplish purpose aligning interest of managers owners. The legal protections provided to shareholders country have ownership concentration. From 2008 2018, data 225 non-financial companies were obtained from Pakistan Stock Exchange order analyze effects concentration business risk-taking performance. Results postulated that Single large shareholder negatively affect risk taking act preserve their personal benefits support conservative investment policy. Presence Multiple proved be cause internal mechanism, such firm’s charades higher profile because agency conflict between other unfriendly multiple enforce value exploiting risky investments by voting power. Individual (diffused ownership) is significantly negative associated with performance measures. Diffuse imparts power disperse owners cannot directly monitor managers’ practices monitoring cost very high. In case mangers take those decisions which are favor therefore low portfolio. conflicts management diffuse ultimately results poor firm.