کد مقاله | کد نشریه | سال انتشار | مقاله انگلیسی | نسخه تمام متن |
---|---|---|---|---|
980378 | 1480455 | 2012 | 12 صفحه PDF | دانلود رایگان |
![عکس صفحه اول مقاله: Multiple banking relationships, managerial ownership concentration and firm value: A simultaneous equations approach Multiple banking relationships, managerial ownership concentration and firm value: A simultaneous equations approach](/preview/png/980378.png)
This paper examines how the number of banking relationships affects the interaction between managerial ownership and firm performance, and sheds light on the conditions under which banking relationships play a role in alleviating shareholder–manager conflicts. Our results provide several interesting insights. We document that bank monitoring has substantial value when managers are improperly incentivized, but that it becomes less important when managers are properly incentivized. There is a substitution effect between the value-increasing benefits of managerial ownership and bank monitoring. We also find that any existing free-riding concerns from having too many banking relationships are problematical only when Tobin's Q is high and managerial ownership is high.
► Endogeneity between the number of banks, managerial ownership and firm performance.
► Bank monitoring has substantial value when managers are improperly incentivized.
► Substitution effect between the impact of managerial ownership and bank monitoring.
► Free riding problem is problematical only when Q and managerial ownership are high.
Journal: The Quarterly Review of Economics and Finance - Volume 52, Issue 3, August 2012, Pages 286–297