Leadership Role and Entrepreneurial ability of Number One Shareholder in Improving Corporate Performance under the Governance Structure of an Emerging Market Economy

Abstract

This paper focuses on leadership role and entrepreneurial ability of Number one shareholder of the corporate firm in terms of ownership stake as well as working as CEO and/or Chairman of the Board of Directors in improving corporate performance in an emerging market context. Regression results show that performance measures decrease initially at a certain level of Top-1 shareholder's ownership, then increase as the level of ownership increases. Similarly, CEO variable also shows positive significant relation with performance. However, only a few other governance variables are in operative with the strong presence of Number one shareholder in corporate activities. These results advocates that leadership role and entrepreneurial ability of Number one shareholder should get due attention in structuring governance mechanisms.