Firm Performance when Ownership is very Concentrated: Evidence from a Semiparametric Panel

M. Hamadi () and A. Heinen

Working Paper CRENoS from Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia

Abstract: We consider the effect on performance of very large controlling shareholders, who are mostly organized in voting blocks and business groups, in a sample of Belgian listed firms from 1991 to 2006. Since the shape of the relation between ownership and firm value is a controversial issue in corporate finance, we use semiparametric local-linear kernel-based panel models. These models allow us not to impose a priori functional restrictions on the relation between ownership and performance. Our semiparametric analysis shows that the effect on performance varies depending on the size of ownership stakes and that there are departures from linearity.

Keywords: Family firms; Firm performance; Large shareholders; Ownership concentration; Semiparametric panel (search for similar items in EconPapers)
JEL-codes: C14 C23 G32 (search for similar items in EconPapers)
Date: 2015
New Economics Papers: this item is included in nep-bec, nep-cfn, nep-mfd and nep-sbm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (14)

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Related works:
Journal Article: Firm performance when ownership is very concentrated: Evidence from a semiparametric panel (2015)
Working Paper: Firm Performance when Ownership is very Concentrated: Evidence from a Semiparametric Panel (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:cns:cnscwp:201502

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