This study looks at the relationship between ownership structure, monitoring and firm performance. The research employed the agency theory hypothesised by Jensen and Meckling (1976) from the view of contractual relationships among various parties involved within a company. It presents a longitudinal study of the 161 non- financial publicly listed companies in the Jakarta Stock Exchange between 1994- 2000. This design enables a researcher not only to examine the effects of various governance variables on corporate performance, but also to examine the extent to which such relationships vary with changes in the general economic environment. This study reveals that only a small proportion of private-domestic Indonesian firms have a widely dispersed ownership structure. Viewed from the standpoint of traditional agency theory, the separation of ownership and control seems to work differently in Indonesia. In this country the agency problem is not between the owners and the managers, as in Anglo-Saxon countries, but may be between “strong” controlling shareholders and “weak” minority owners. The findings suggest a strong association between degrees of ownership concentration, owner involvement in supervisory/management board and the existence of family business groups. These factors are interdependent, and each of them relates cohesively to the others within the organisation. In this regard, the collectivism and higher power distance value dimensions that are dominant in Indonesian society also heighten such relationships. Inappropriate institutional, law and legal enforcement provide the means for the controlling shareholders to continue these practices, which insulate them from external interference, monitoring and supervision. / Taken together, these findings support the view that national cultural features have a profound effect on the structure of national economies. The evidence corroborates the uniqueness of corporate governance practices in Indonesia, and the findings support the supremacy of controlling shareholders Further to the growing debate on the costs and benefits of controlling shareholders, the empirical findings of this study reveal that these shareholders are the source of the corporate governance problem rather than solution. In short, the most basic factor which inhibits the effectiveness of corporate governance implementation in Indonesia is the existence of powerful large shareholdings in the hands of a family. Governance reform, therefore, should address the corporate system by seeking to reduce the supremacy of these shareholders, and at the same time empower the other stakeholders. The findings also support the view of both the co-evolutionary and path-dependency theories in regard to factors that determine the pattern of ownership structure. The development of firms in Indonesia follows the path-dependence structure and, during this process, the firms’ environments will interact with and operate endogenous responses for environmental change. Such exogenous and endogenous forces shape the environment and trigger organisations to adapt in different ways so that they are able to survive. / Thus, one would expect there to be different corporate governance systems within each country and any effort towards reforming such systems should consider factors specific to that country. This implies that governance reforms should be fully compatible with a country’s national culture, institutional, legal and business systems. Other variables, such as informal norms (social norms and cultural beliefs) and the political environment in a country should also be considered in the design of these reforms.

Master Thesis in Business Administration, School of Business and Economics, Linnaeus University, 4FE17E, 2017 Authors: Anders Maase and Niklas Möllmark Supervisor: Anna Stafsudd Second supervisor: Håkan Locking Examiner: Karin Jonnergård Title: How does the ownership structure affect the firm’s performance in a Swedish context? Background: Ownership structure has been a hot topic ever since the first firms were founded and has since been affected by law, globalization and internationalization. Sweden has previously been characterized by a high ownership concentration as a result from ‘The Swedish Model’ but today there are international pressures that instead propagate a spread type of ownership. The views differ if Sweden is to continue advocating the concentrated ownership structure or shifting towards the Anglo-American corporate governance model. Purpose: To explain if and how ownership structure affects the performance of Swedish listed firms. Method: The study has a deductive research approach and the underlying theory is based on agency theory. The quantitative research method relies on ownership, board and financial data from 2011, 2012 and 2013. Conclusion: There is no significant relationship between ownership concentration and the firm’s performance, but between ownership structure there is significant evidence that foreign and institutional ownership affects the company's performance. Thus, it is possible that Sweden moves towards an Anglo-American type of corporate governance. / Examensarbete, Civilekonomprogrammet, Ekonomihögskolan vid Linnéuniverstietet, Företagsekonomi, 4FE17E, VT-2017 Författare: Anders Maase och Niklas Möllmark Handledare: Anna Stafsudd Medbedömare: Håkan Locking Examinator: Karin Jonnergård Titel: Hur påverkar ägarstrukturen bolagets prestation i en svensk kontext? Bakgrund: Temat ägarstruktur har debatterats sedan bolagens uppkomst och har sedan dess påverkats av lagstiftning, globalisering och en ökad internationalisering. Sverige har tidigare kännetecknats av en hög ägarkoncentration till följd av den svenska modellen men idag finns det internationella påtryckningar som istället förespråkar ett spritt ägande. Åsikterna går isär om Sverige ska fortsätta förespråka den koncentrerade ägarstrukturen eller övergå mot den angloamerikanska bolagsstyrningsmodellen. Syfte: Att förklara om och i så fall hur ägarstrukturen påverkar svenska börsnoterade bolags prestation.   Metod: Studien har en deduktiv forskningsansats där den teoretiska grunden utgörs av agentteori. Den kvantitativa forskningsmetoden bygger på ägar-, styrelse- och finansiell data från åren 2011, 2012 och 2013. Slutsats: Det råder inget signifikant samband mellan ägarkoncentration och bolagets prestation men mellan ägarstruktur finns det signifikanta belägg för att utländskt och institutionellt ägande har en negativ påverkan på bolagets prestation. Därmed är det möjligt att Sverige rör sig mot en angloamerikansk typ av bolagsstyrning.

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