Effect of Managerial Ownership on the Profitability of Uk Companies

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There are several types of managerial ownership that is based upon the type of management the company owns. In addition, the managerial ownership has positive and negative effect upon the profitability of the companies based in United Kingdom. Therefore, it is very necessary to include the type of management owned before going through the impact of managerial operation upon the profitability of the firm. The first managerial ownership includes the self owned companies that emphasizing the operation to be smooth flowing from the side of the management of the company. On the other hand, the other manager form emphasizes upon the ownership that is owned by overtaking the other company by deriving the maximum percentage of shares. At this point, the managerial form directly affects the profitability of the company. The positive impact takes place when the company is being managed efficiently by the managers of the company and therefore keeping the track of all the activities carried out in the company. On the other hand, the negative impact of management highlights the overtaken companies of which the management failed to sustain the existence of the entity. In addition, the profitability of the company is also measured by ascertaining the type of management strategy followed by the manager.

The research questions are:

What are the effects of managerial ownership upon the business?
What is the relationship between the managerial ownership and company’s profitability?

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