Institutional Ownership on Firm Performance: a Systematic Literature Review

Putri Meilanda; Mutiara Syalwa; Mona Nur Adhillah; Mukhtaruddin Mukhtaruddin

doi:10.55927/jfbd.v4i1.56

Authors

Putri Meilanda Fakultas Ilmu Akuntansi, Universitas Sriwijaya
Mutiara Syalwa Fakultas Ilmu Akuntansi, Universitas Sriwijaya
Mona Nur Adhillah Fakultas Ilmu Akuntansi, Universitas Sriwijaya
Mukhtaruddin Mukhtaruddin Fakultas Ilmu Akuntansi, Universitas Sriwijaya

DOI:

https://doi.org/10.55927/jfbd.v4i1.56

Keywords:

Institutional Ownership, Firm Performance, Systematic Literature Review, Agency Theory

Abstract

Institutional ownership (IO) affects firm performance (FP). This Systematic Literature Review (SLR) analyzes studies from 2016–2025, focusing on pre- and post-COVID-19 trends. Articles from Google Scholar, Emerald, MDPI, and ScienceDirect were reviewed, with research concentrated in Indonesia, Bangladesh, and India. Findings indicate institutional ownership enhances firm performance by reducing agency costs and improving efficiency. However, results vary across countries and investor types, with ROA, ROE, and Tobin’s Q as key performance indicators. While many studies confirm a positive relationship, some report insignificant or negative effects, especially in emerging markets. This study synthesizes prior research and identifies theoretical gaps. Future studies should explore cross-country comparisons and multi-theory approaches to better understand institutional ownership dynamics.

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