Ownership Structure and Its Implications for Corporate Governance: A Literature Review

Abstract

Ownership structure is a fundamental factor influencing corporate governance practices. This literature review aims to examine various ownership structure models commonly found in companies and their implications for governance mechanisms, including aspects of transparency, accountability, and risk control. The study analyzes the relationships among ownership concentration, institutional ownership, and the roles of majority and minority shareholders in determining governance effectiveness. The findings indicate that concentrated ownership structures often lead to majority owner dominance in decision-making, though this can be balanced by the role of independent supervisory boards and stringent regulations. Conversely, dispersed ownership can enhance market oversight but potentially give rise to conflicts of interest among shareholders. The study recommends tailoring governance mechanisms to the specific characteristics of the ownership structure to improve corporate performance and sustainability.