Corporate Governance and Profitability: Ownership Concentration as a Mediator

This study digs into the complex world of corporate governance, a crucial but sometimes ignored aspect of the overall performance of European organizations. Prior studies have mostly focused on the link between ownership structures and company performance, but they have frequently neglected to examine the instrumental mechanisms that serve as middlemen in this relationship. Via a thorough investigation of the complex interactions between ownership types and company performance and a comprehensive examination of the various governance approaches and their resulting effects on firm performance indicators, this paper aims to close this research gap. Our study's specific attention on Ownership concentration as a mediator variable, which illuminates its critical role in forming the complex interactions between corporate governance structures and firm performance outcomes, is a novel and important component. The results of this study in case it will be considered from practical perspective, it will have significant ramifications for the corporate environment in Europe. The study provides useful insights for both business leaders and policymakers by illuminating the complex relationship between ownership forms and firm performance. It promotes a more comprehensive approach to corporate governance and emphasizes the significance of governance activities that go beyond simple ownership. Particularly, the recognition of Ownership concentration as a mediating factor makes clear a crucial lever that businesses can deliberately employ to improve their governance frameworks and eventually boost performance. From a theoretical standpoint, this work advances our knowledge of the complex dynamics inside corporate governance, which adds to the body of previous material. It enhances the theoretical framework guiding corporate governance research by looking into the factors that mediate the ownership-performance link. Researchers' toolkits are expanded by the addition of ownership concentration as a mediator variable, allowing for a more thorough investigation of how governance structures affect company performance. Empirically, this study offers hard facts and insights gleaned from a careful examination of actual corporate data. It provides an invaluable resource for upcoming empirical studies of corporate governance in the