Hidden Ownership and Firm Performance: Evidence from Thailand’s Initial Public Offering Firms

Natthawut Wangwan () and Arnat Leemakdej
Additional contact information
Natthawut Wangwan: Department of Finance, Faculty of Commerce and Accountancy, Thammasat University, Bangkok 10200, Thailand
Arnat Leemakdej: Department of Finance, Faculty of Commerce and Accountancy, Thammasat University, Bangkok 10200, Thailand

IJFS, 2023, vol. 11, issue 3, 1-16

Abstract: Previous studies have overlooked hidden ownership in their analysis, which could result in biased findings. This research utilizes unique data sources to uncover hidden ownership patterns and employs ordinary least square regression to investigate the relationship between hidden ownership and firm performance. The findings indicate that hidden ownership affects a firm’s performance, but not in the same manner as previously thought. Firms with hidden ownership actually perform better than those without. These results contradict the belief that hidden ownership leads to wealth expropriation from minority shareholders and negatively impacts a firm’s performance. The study also remains robust after accounting for potential endogeneity using an instrumental variable approach. The findings provide policy implications and contribute to the ownership and firm performance literatures.

Keywords: hidden ownership; ownership structure; firm performance; corporate governance; initial public offerings (search for similar items in EconPapers)
JEL-codes: F2 F3 F41 F42 G1 G2 G3 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.mdpi.com/2227-7072/11/3/107/pdf (application/pdf)
https://www.mdpi.com/2227-7072/11/3/107/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jijfss:v:11:y:2023:i:3:p:107-:d:1232595

Access Statistics for this article

IJFS is currently edited by Ms. Hannah Lu

More articles in IJFS from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().