Large Shareholder¡¯s Identity and Stock Price Synchronicity: Evidence from a MENA Market

Adel Bino, Diana Abu-Ghunmi, Mohammad Tayeh and Dua¡¯a Shubita

International Journal of Financial Research, 2016, vol. 7, issue 1, 135-153

Abstract: This paper investigates the association between large shareholder¡¯s identity and stock price synchronicity in a country where investor protection is weak. Results show that stock prices in Jordan have synchronous behavior especially when the firm is large, consistent with previous empirical evidence on stock price behavior in low per capita GDP countries. Most of the public corporations are owned and controlled by families. In most of the family-controlled firms, the controlling family is also involved in firm¡¯s management leading to loose separation between ownership and management. Furthermore, stock prices of family (government)-controlled firms are significantly less (more) synchronous than those of widely held corporations. The pyramid structure is the most widely used indirect control mechanism but results in little deviations between ownership and control.

Keywords: synchronicity; ownership structure; cash flow rights; voting rights (search for similar items in EconPapers)
Date: 2016
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.sciedu.ca/journal/index.php/ijfr/article/view/8708/5239 (application/pdf)
http://www.sciedu.ca/journal/index.php/ijfr/article/view/8708 (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:jfr:ijfr11:v:7:y:2016:i:1:p:135-153

DOI: 10.5430/ijfr.v7n1p135

Access Statistics for this article

International Journal of Financial Research is currently edited by Gina Perry

More articles in International Journal of Financial Research from International Journal of Financial Research, Sciedu Press
Bibliographic data for series maintained by Gina Perry ().