Abstract: The aim of this paper is to investigate the influence of
market share and diversification on the nonlife insurers- performance.
The underlying relationships have been investigated in different
industries and different disciplines (economics, management...), still,
no consistency exists either in the magnitude or statistical
significance of the relationship between market share (and
diversification as well) on one side and companies- performance on
the other side. Moreover, the direction of the relationship is also
somewhat questionable. While some authors find this relationship to
be positive, the others reveal its negative association. In order to test
the influence of market share and diversification on companies-
performance in Croatian nonlife insurance industry for the period
from 1999 to 2009, we designed an empirical model in which we
included the following independent variables: firms- profitability
from previous years, market share, diversification and control
variables (i.e. ownership, industrial concentration, GDP per capita,
inflation). Using the two-step generalized method of moments
(GMM) estimator we found evidence of a positive and statistically
significant influence of both, market share and diversification, on
insurers- profitability.
Abstract: Using data of listed Croatian firms from the Zagreb
Stock Exchange we analyze the relationship between firm ownership
(ownership concentration and type) and performance (ROA).
Empirical research was conducted for the period 2003-2010, yielding
with the total of 1,430 observations. Empirical findings based on
dynamic panel analysis indicate that ownership concentration
variable - CR4 is negatively related with performance, i.e. listed firms
with dispersed ownership perform better than firms with concentrated
ownership. Also, the research indicated that foreign controlled listed
firms perform better than domestically controlled firms. Majority
state owned firms perform worse than privately held firms but
dummy variable for privately controlled firms was not statistically
significant in the estimated panel model.