Insider ownership, ownership concentration and investment performance: An international comparison

Gugler, Klaus; Mueller, Dennis C.; Yurtoğlu, B. Burçin

doi:10.1016/j.jcorpfin.2008.09.007

Cited by 91 publications

(60 citation statements)

References 59 publications

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“…LOGAT was used as a control variable, displaying a negative sign, corroborating the results of Gugler et al (2008) and Caixe & Krauter (2013), who state that a company's size impacts negatively in its market value, pointing out that large corporations are subject to greater agency problems and, consequently, higher monitoring costs, which reduce their performance. As for Net Profit, the positive sign was expected, given that an increase in it points out, as a first indicative, a maximization of the company's results.…”

Section: Resultssupporting

confidence: 68%

Concentração de propriedade e desempenho: um estudo nas empresas brasileiras de capital aberto do setor de energia elétrica

et al. 2016

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Palavras-chave: Avaliação de desempenho; Governança corporativa; Econometria.Abstract: The concentration of ownership has long been discussed in order to assess its impact on business performance. This article aims to verify whether the ownership structure, more specifically the concentration of property, has an impact on the performance of companies of the electricity sector. Although numerous works on the theme have already been produced, this article introduces a new methodological approach by means of a new combination of variables, rekindling the discussion on the concentration of property in Brazil and the identity of these shareholders -in a peculiar scenery of scandals of mismanagement, controlled results, and business corruption in Brazil -from the perspective of the relationship between private and public capital with analysis performed in the electricity sector. The study was conducted through analysis of panel data. The sample analyzed considered 22 Brazilian public companies of the electricity sector between 2010 and 2014. The results show a better performance of the private enterprises in comparison with the public ones; better performance of companies with ordinary shares in the hands of only one majority shareholder; and a positive relationship with net profit. In contrast, the variables concerning common shares in the hands of the two largest shareholders and total assets showed a negative relationship with performance.

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Section: Resultssupporting

confidence: 68%

Concentração de propriedade e desempenho: um estudo nas empresas brasileiras de capital aberto do setor de energia elétrica

et al. 2016

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“…Similarly, [24] in their study of UK firms, and [25] in his study of firms in Switzerland find that insider ownership has a positive relationship with firm performance. However, a study by [26] finds that insider ownership has an unambiguous negative effect on firm performance while [27] indicates that insider ownership boost risk taking strategies among managers.…”

Section: Literature Reviewmentioning

confidence: 98%

Ownership Structure and Bank Performance

Rahman¹,

Reja²

2015

JOEBM

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Abstract-This paper provides evidence on the impact of different types of ownership structure on bank performance. Using secondary data, the empirical analysis of this study is confined to Malaysian commercial banks during the period of 2000 to 2011. Multiple regression with fixed effects model is used to test the research model. Testing on five categories of ownership structure such as insider, family, government, institutional and foreign ownership, the results suggest that bank performance varies with different types of ownership structure.

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“…The results of studies such as those by Claessens, Djankov, Fan, and Lang (2002), Gugler, Mueller, and Yurtoglu (2008), Fahlenbrach and Stulz (2009) and Gárcia-Meca and Sánchez-Ballesta (2011) suggest that there is a relationship between ownership structure and corporate performance. However, other studies, such as those by Demsetz and Lehn (1985), Himmelberg, Hubbard, and Palia (1999) and Demsetz and Villalonga (2001), conclude that the ownership and control structure is an endogenous variable that is determined by corporate characteristics and does not influence company performance.…”

Section: Introductionmentioning

confidence: 98%

A influência da estrutura de propriedade e controle sobre o valor de mercado corporativo no Brasil

Caixe¹,

Krauter

2013

Rev. contab. finanç.

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The Brazilian model of corporate governance is characterized by a highly concentrated ownership structure, which usually culminates in an overlap between ownership and management. According to the literature, the accumulation of shares by the controller(s) can affect corporate performance due to both the alignment (or incentive) effect and the entrenchment effect. At first, the presence of large shareholders is associated with benefits for an organization because it increases the effectiveness of management monitoring. However, very high levels of ownership concentration can allow controllers to dominate the corporation's decision-making process, which could result in the expropriation of wealth from minority shareholders. The relevance of the ownership structure as an internal mechanism of corporate governance motivates the present study. This article aims to test whether ownership and control concentration influences corporate market value. An unbalanced panel was used for the period from 2001 to 2010, composed of 237 Brazilian non-financial publicly traded companies, totaling 1,199 observations. Dynamic regression models were used, estimated by the System Generalized Method of Moments (Sys-GMM), to mitigate possible sources of endogeneity, such as the omission of variables, the feedback effect, and the simultaneity. A quadratic relationship was found between cash flow rights of the largest shareholder and firm market value. Moreover, the results indicate that the corrected market value of the total shares held by the largest shareholder captured the incentive effect, while voting rights concentration captured the entrenchment effect.

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Insider ownership, ownership concentration and investment performance: An international comparison

Cited by 91 publications

References 59 publications

Concentração de propriedade e desempenho: um estudo nas empresas brasileiras de capital aberto do setor de energia elétrica

Concentração de propriedade e desempenho: um estudo nas empresas brasileiras de capital aberto do setor de energia elétrica

Ownership Structure and Bank Performance

A influência da estrutura de propriedade e controle sobre o valor de mercado corporativo no Brasil

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