The Impact of Ownership Structure on Corporate Financial Strategy CASE STUDY ON KUWAIT ENERGY EGYPT

نوع المستند : المقالة الأصلية

المؤلفون

1 المعهد العالي للدراسات المتطورة بالقطامية

2 الكلية العسكرية لعلوم الإدارة

المستخلص

The study aims to investigate the effect of ownership structure on the financial strategy of Kuwait Energy Egypt, so it used a descriptive-analytic approach to analyze data from 2014 to 2022. Ownership structure was measured by the percentage of shares held by foreign investors, while financial strategy was measured by the debt-to-equity ratio and total borrowing to equity. Additionally, the study applied ROE and ROA ratios to assess the efficiency of investment in various assets and the rate of return.

The study found that ownership structure has a statistically significant impact on the financial strategy of Kuwait Energy Egypt, with the debt-to-equity ratio being affected by ownership structure. In addition ownership structure has a statistically significant impact on profitability measured by ROE and ROA. And in light of the results reached: The following recommendations can be made: Shareholders should take into consideration the effects of new shareholders. The new shareholders bring technical know-how and additional capital for the business. These should improve corporate financial strategy. Additionally, the new shareholders reduce the level of risk held by the existing shareholders. However, the actions of the new shareholder could diminish performance.

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