Ownership Concentration and Firm Performance in High-Tech Firms: An Empirical Study Compared with Traditional Firms

Abstract

This research examines the relationship between ownership concentration and firm performance in high-tech firms, contrasting findings with those from traditional firms. Ownership concentration, characterized by the distribution of equity ownership among shareholders, is a critical factor influencing corporate governance mechanisms and strategic decision-making processes. In the context of high-tech firms, which operate in dynamic and innovation-driven environments, the relationship between ownership concentration and firm performance may differ from that observed in traditional industries. Through empirical analysis utilizing financial data and corporate governance indicators, this study investigates the impact of ownership concentration on various performance metrics, including profitability, innovation output, and market valuation, in both high-tech and traditional firms. Drawing on a sample of companies from different industries and regions, the research employs regression analysis and comparative assessments to discern patterns and differences in the relationship between ownership concentration and firm performance across different sectors. The findings offer insights into the unique governance challenges and opportunities faced by high-tech firms, as well as the implications for investors, managers, and policymakers seeking to enhance corporate governance practices and performance in innovation-intensive industries. By examining ownership concentration through the lens of firm performance in high-tech firms compared with traditional firms, this research contributes to a deeper understanding of the complexities of corporate governance in the context of technological innovation and economic transformation.