Impact of Ownership Structure and Liability Composition on Financial Performance: Evidence from Listed Food Firms in Bangladesh

This study examines the influence of ownership structure and liability management on the financial performance of publicly listed companies in Bangladesh, specifically focusing on return on assets (ROA) and profit after tax (PAT). A balanced panel dataset comprising 18 listed food firms over six years (2018–2023) was used to analyze the relationships between various investor categories- public, institutional, director, foreign, and government investors and financial performance by employing panel data regression models. The findings indicate that government ownership has a statistically significant adverse impact on ROA and PAT, implying possible inefficiencies or political effects linked to state ownership. In addition, public, institutional, director, and international investors have negative although statistically insignificant correlations with firm profitability, suggesting their minimal impact on performance outcomes. In contrast, short-term liabilities exhibit a robust and highly significant positive impact on PAT (p = 0.000), underscoring the importance of effective short-term financing in augmenting profitability, whereas long-term liabilities are statistically negligible. The models exhibit a strong explanatory power, indicating that ownership and liability structure collectively account for significant changes in business performance. These findings highlight the significance of ownership structure and debt maturity management in influencing financial results. The study offers significant insights for policymakers, regulators, and corporate executives aiming to refine governance processes and capital structures to improve business profitability in emerging economies such as Bangladesh.