The Effects of Ownership Concentration and Origin on Listed Firms’ Value: Empirical Evidence from Romania
Ştefan Gherghina () and
Mihai Nedelescu ()
Additional contact information
Mihai Nedelescu: Romanian-American University
Journal for Economic Forecasting, 2014, issue 3, 51-71
This paper aims at exploring the relationship between ownership concentration and firm value by using panel data for firms listed on the Bucharest Stock Exchange (BSE). Additionally, we investigate the influence of ownership origin on firm value. Results drawn from a longitudinal analysis of a sample of all BSE listed companies, except for financial firms, provide support for a nonlinear relationship between the percentage of shares held by the three largest shareholders, considered individually, and firm value. Also, the nonlinear relationship is confirmed for the sum of holdings of the two largest shareholders, while the sum of holdings of the three largest shareholders exhibit a positive influence on firm value. Finally, if we consider the ownership origin, the results provide support for a positive relationship between the residence of the largest shareholder and firm value, while the influence of the sum of foreign investors’ holdings on firm value is nonlinear.
Keywords: corporate governance; ownership concentration; ownership origin; firm value; panel data analysis (search for similar items in EconPapers)
JEL-codes: G32 G34 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: http://EconPapers.repec.org/RePEc:rjr:romjef:v::y:2014:i:3:p:51-71
Access Statistics for this article
Journal for Economic Forecasting is currently edited by Lucian Liviu Albu and Corina Saman
More articles in Journal for Economic Forecasting from Institute for Economic Forecasting Contact information at EDIRC.
Series data maintained by Corina Saman ().