Article ID Journal Published Year Pages File Type
5088400 Journal of Banking & Finance 2016 40 Pages PDF
Abstract
Using a comprehensive sample of US firms we show that most of them have multiple blockholders whose presence and ownership stakes lead to a significant difference between ownership and power. This difference matters. First, we find that insider power (ownership) is negatively (positively) related to firm value. Second, we show that outsider power is positively related to firm value. Our direct blockholder-level measure of power explains firm value over and above the explanatory power of firm-level measures used in the literature (such as the number of blockholders and the dispersion of their ownership stakes).
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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