Ownership Strucure ad the Performance of Belgian Listed Firms

Malika Hamadi
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Malika Hamadi: UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES)

No 2002015, LIDAM Discussion Papers IRES from Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES)

Abstract: In this study we investigate empirically the relationship between ownership structure of Belgian listed firms, and their performance measured by Tobin’s Q. We focus on the management and the largest shareholders equity ownership. We use first a cross-sectional estimation from 1991 to 1996. Second, we use panel data estimation to control whether the results found cross-sectionally are not due to unobserved firm heteroeneity. The use of panel data confirms the results obtained cross-sectionally for managerial ownership, that is, the relationship between the fraction of equities held by managers and Tobin’s Q is negative. However, panel data results for the relationship between largest sharholders equities ownership and Tobin’s Q become positive, while it is negative cross-sectionally. These results indicate that there is firm heterogeneity which is not captured in the cross-section estimation.

Keywords: Corporate governance; managerial ownership; largest shareholders ownership; firm performance; Tobin’sQ; cross-sectional models; panel data (search for similar items in EconPapers)
JEL-codes: C21 C23 D23 G32 (search for similar items in EconPapers)
Pages: 35
Date: 2002-05-01
New Economics Papers: this item is included in nep-cfn
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Persistent link: https://EconPapers.repec.org/RePEc:ctl:louvir:2002015

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