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Business Task 2 on reflection EssayUAE otherwise cognise as fall in Arab Emirates is amalgamation of 7 Emirates namely Umm Al, Quwain, Ras Al Khaimah, Ajman, Sharjah, Dubai, Abu Dhabi, and Fujairah. UAE is the second biggest Arabian Middle East economy. The fall in Arab Emirates is the number 3 biggest in this region in crude inunct exporting, following Iran and Saudi Arabia. It possesses the number 6 biggest recognized conservative crude cover reverse and the 5th biggest earthy gas reserves. The swift kick upstairsth in demand of water and electricity has generated the necessity to appraise unconventional power generation sources. In the year 2008, the United Arabs Emirates produced energy white paper on hold of energy that confirmed that nuclear power to be environmentally friendly and safe alternative which would growth the prevailing plants of power in accomplishing increasing energy requirements.2.1 Objective of this study accomplishment The objective of this s tudy of examining whether ownership structure matters for the process of firms in United Arabs Emirates was achieved. Empirical evidence suggests that privately held firms tend to be more efficient and more profitable than publicly held firms. This shows that ownership structure matters. The uncertainty now is how does it guess firm proceeding? This question is very important because it is based on a research agenda that has been strongly promoted by La Porta et al. (1998 1999 2000). harmonise to these studies, failure of the legislative fabric to provide sufficient protection for external investors, entrepreneurs and founding investors of a company tend will maintain large positions in their firms thus resulting in a concentrated ownership structure. This paper aimed at looking at whether ownership structure has an impact on firm performance in UAE. This region has witnessed significant economic growth over the last few decades. The region is also facing turbulent times with respect to bodied nerve practices, resulting in poor firm performance. integrated presidential term issues argon not limited to the Gulf region. From a global point of view, corporate governance has witnessed significant transformations over the last decade (Gomez and Korine, 2005). The data that is utilize in this study includes 362 non-financial listed firms during the period of 2006-2011 from Thomson one banker, Thomson.com, DataStream and annual report. Panel data is used to crumple the impact of ownership structure on firm performance number of independent directors on the board are controlled for. The different types of ownership structure that are included in the study are managerial ownership, family ownership, government ownership, institution ownership, external ownership and concentrated ownership.Evidence personal learning and development1.0 do of structure on firm performance It is certain(p), managerial ownership, Chairman own share, institutional investors, corporate total own, institutional owner domestic and corporate foreign all have positive effects on firm performance. The evidence is also consistent with theoretical and observational arguments. On the contrary, When Return on Assets (ROA) is used as a measure of performance the evidence shows that government ownership has negative effects on firm performance in United Arab of Emirates oil firms. Therefore, performance of United Arab of Emirates oil companies is affected by government ownership. The congressship between performance and ownership structure also differs for firm specific variables such as leverage, GDP growth and firm coat. When the Tobins Q is used, the relationship is negative for leverage, GDP growth and firm size. The negative and significant impact of firm size on firm performance when Tobins Q is used can be attributed to the fact that large firms have limited investment opportunities, which limit their potential to grow and make profit. Su rprisingly, the impact of GDP growth is significantly negative. However, when ROA is used, we did not find any significant relationship with firm performance in United Arab of Emirates oil firms. This study also shows that there may be a necessity to motivate policy makers of United Arab of Emirates oil firms to ensure that banks practice the mechanisms of corporate governance effectively. This practice should be compatible for the business environment of United Arab of Emirates oil firms, whereas adopting the same governance standards in order to ensure unification of disclosure aim among the banks. It is expected that the best practice of the corporate governance characteristics will contribute to improve efficiency, effectiveness and monitoring in the Islamic banks of UAE. Therefore, this can only be applied by developing the regulatory and compelling frameworks. In the last 4 decades, researchers have believed that there is a connection between the firm performance and the ownership structure. In this regards, there has been publications of many studies on different markets to inspect this relationship. This connection between performance and ownership structure dates back to empirical study of Mean and Berle in the year 1932 that got that the weakness of shareholding in a negative way influence the performance of affirm via an inverse relationship. Generally, the number of well-developed policies and the present court-ordered systems are poorly developed in the markets that are emerging. These new markets, according to most analysis studies, lack protection for their creditors and shareholders (La Porta, 1999).2.0 Ownership structure in relation to firm performance The issue as to whether ownership structure matters for the performance of firms has been an important subject of debate in the finance literature. Empirical evidence suggests that privately held firms tend to be more efficient and more profitable than publicly held firms. This s hows that ownership structure matters. The question now is how does it affect firm performance? This question is very important because it is based on a research agenda that has been strongly promoted by most researchers in economics. According to these studies, failure of the legislative framework to provide sufficient protection for external investors, entrepreneurs and founding investors of a company tend will maintain large positions in their firms thus resulting in a concentrated ownership structure.This finding is interesting because it implies that ownership structure can affect the performance of the firm in one way or the other. It is indisputable the lack of regulations in corporate governance gives managers who intend to mishandle the flow of cash for their own personal interest a low control level. The empirical results from the past studies of impacts of ownership structure on performance of corporate have been inconclusive and mixed up.ReferencesGomez, P.Y. Korine, H. 2005, Democracy and the Evolution of Corporate Governance. Corporate Governance, 13, 739-752.La Porta, R., L. et al. 1999, Corporate ownership around the world. The Journal of Finance, 54(2), 471517.Source document