Reading between the blocks
Imants Paeglis and
Journal of Corporate Finance, 2017, vol. 45, issue C, 294-317
We examine the influence of multiple blockholders on the ownership-firm value relationship for a comprehensive sample of US firms. Additional blockholders can either form a coalition with or monitor the largest individual blockholder. The choice between these alternatives influences the manner in which ownership affects firm value. Further, the choice between coalition formation and monitoring is influenced by blockholder identity – individual blockholders tend to form a coalition with while corporate blockholders tend to monitor the largest individual blockholder. Even among individual (corporate) blockholders, there is significant variation in the probability of coalition formation (monitoring). Overall, our findings suggest that the ownership-firm value relationship critically depends on the presence and identity of additional blockholders.
Keywords: Ownership; Multiple blockholders; Valuation (search for similar items in EconPapers)
JEL-codes: G32 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:corfin:v:45:y:2017:i:c:p:294-317
Access Statistics for this article
Journal of Corporate Finance is currently edited by A. Poulsen and J. Netter
More articles in Journal of Corporate Finance from Elsevier
Series data maintained by Dana Niculescu ().