Ownership-based Incentives, Internal Corporate Risk and Firm Performance

Chaiyasit Anuchitworawong

No 2004-17, CEI Working Paper Series from Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University

Abstract: This study focuses on the incentives and risk-taking behavior of large shareholders in Thailand before and after the 1997 financial crisis. The results show that there is a negative association between risk and firm performance. However, the effect ore cash flow re members of top management. Furthermore, there is weak evidence that a move to more transparent direct control structure benefits the firms. Overall, the results indicate that ownership-based incentives are an effective means of aligning the interests between controlling shareholders and minority shareholders particularly in the post-crisis period.

Keywords: Cash flow rights; Incentives; Financial and business risk; Thailand (search for similar items in EconPapers)
JEL-codes: G32 (search for similar items in EconPapers)
Pages: 42 pages
Date: 2004-09
Note: May 2004
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:hit:hitcei:2004-17

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