The Effect of Changes in Ownership Structure on Performance: Evidence from the Thrift Industry

Rebel Cole and Hamid Mehran

No 1996-06, Finance and Economics Discussion Series from Board of Governors of the Federal Reserve System (U.S.)

Abstract: Restrictions on the ownership structure of a public company may harm the company's performance by preventing owners from choosing the best structure. We examine the stock-price performance and ownership structure, before and after the expiration of anti-takeover regulations, of a sample of thrift institutions that converted from mutual to stock ownership. We find that after the anti-takeover provisions expire, firm performance improves significantly, and the portions of the firm owned by managers, noninstitutional outside blockholders, and the firm's employee stock ownership plan increase. Changes in performance are positively associated with changes in ownership by managers and by noninstitutional outside blockholders but negatively associated with changes in ownership by employee stock ownership plans.

Keywords: Corporate control; regulation; ownership structure; anti-takeover provisions (search for similar items in EconPapers)
Pages: 43 pages
Date: 2019-12-04
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.federalreserve.gov/pubs/feds/1996/199606/199606pap.pdf (application/pdf)

Related works:
Journal Article: The effect of changes in ownership structure on performance: Evidence from the thrift industry (1998)
Working Paper: The effect of changes in ownership structure on performance: evidence from the thrift industry (1996)
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:fip:fedgfe:1996-06

Access Statistics for this paper

More papers in Finance and Economics Discussion Series from Board of Governors of the Federal Reserve System (U.S.) Contact information at EDIRC.
Bibliographic data for series maintained by Ryan Wolfslayer ; Keisha Fournillier ().