Document Type : Original Research Paper

Authors

• V. Mahmoudi
• S. Khamseh

Department of Financial Management, University of Tehran, Iran

Abstract

One of the topics discussed in the financial field is the relationship between the ownership structure of companies and their performance. Increasing the performance indicators on one hand has satisfied the shareholders and on the other hand it is considered as an opportunity to increase the risk acceptance capacities of the companies. In this research, the role of ownership type of major shareholders (banking and non-banking ownership) on the performance of insurance companies in Iran has been investigated. In order to measure performance, two measures of return on company assets and return on equity have been used as dependent variables. The required data was extracted from the financial statements of 16 insurance companies during the period of 2013 to 2015.




The findings of the research indicate the existence of a positive and significant linear relationship between major bank ownership and the performance of insurance companies, which confirms the regulatory hypothesis. Also, insurance companies can take advantage of their technical capacities in the fields of technology and finance and have the support of a strong financial institution in times of crisis. On the other hand, the results of the tests indicate that there is no significant relationship between major non-bank ownership and performance criteria.

Keywords

• Bank Ownership
• Financial Performance
• Financial Leverage
• Size of Company
• Age of Company