This study investigates the effect of ownership and control on firm value using exogenous variation resulting from stock price reactions to the sudden death of individual blockholders. Stock market reactions range from -5% to 4% for inside blockholders as ownership increases and from 0% to -2% for outside blockholders. The difference in market reactions identifies the value of ownership and control while effectively controlling for confounding effects on firm value due to liquidity or anticipated takeover activity. Overall, our results suggest that as ownership increases the beneficial effect of inside blockholders disappears while the beneficial effect of outside blockholders increases.
Keywords: Ownership Concentration; Blockholder; Firm Value; Corporate Control; Sudden Death; Corporate Governance
JEL Classifications: G3, G30
학회소식
[2013년 제 4차] When Blockholders Leave Feet First: Do Ownership an
작성자 : 관리자
조회수 : 854
게시일 :
2013-12-16
