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Ownership concentration & firm performance: Evidence from an emerging market

dc.contributor.authorGrosfeld, Irenaen_US
dc.date.accessioned2007-10-25T20:10:35Z
dc.date.available2007-10-25T20:10:35Z
dc.date.issued2006-06-01en_US
dc.identifier.otherRePEc:wdi:papers:2006-834en_US
dc.identifier.urihttps://hdl.handle.net/2027.42/57214en_US
dc.description.abstractThe initial view of the advantages of ownership concentration in joint stock companies was determined by the concern about the opportunistic managerial behavior. The growing importance of knowledge and human capital in the operation of firms shifts the focus of concern: excessive ownership concentration may stifle managerial initiative. This may be particularly true, and the results obtained in this paper support this hypothesis, in firms with high share of knowledge related activities. I explore the determinants of ownership concentration and the relationship between ownership structure and firm value in the context of a transition economy, i.e. an economy undergoing important changes in its legal and regulatory framework, in macroeconomic policy and most of all, in its property rights allocation. I focus on all non-financial companies traded on the Warsaw Stock Exchange since its inception in 1991 and up to 2003. We can observe that ownership of companies becomes more dispersed with the number of years of listing. The results reported in this paper suggest that firm adjust their ownership structure to firm specific characteristics and that firms belonging to the sector of high technology tend to have lower ownership concentration. However, the positive impact of ownership concentration on firm value detected in OLS regressions becomes even stronger when we control for the endogeneity of ownership.en_US
dc.format.extent158602 bytes
dc.format.extent1802 bytes
dc.format.mimetypeapplication/pdf
dc.format.mimetypetext/plain
dc.relation.ispartofseries834en_US
dc.subjectOwnership Structure, Corporate Governance, Firm Behaviour, Uncertainty, Knowledge Economyen_US
dc.subject.otherD21, G32, 016, P2, P34en_US
dc.titleOwnership concentration & firm performance: Evidence from an emerging marketen_US
dc.typeWorking Paperen_US
dc.subject.hlbsecondlevelEconomicsen_US
dc.subject.hlbtoplevelBusinessen_US
dc.contributor.affiliationumWilliam Davidson Instituteen_US
dc.description.bitstreamurlhttp://deepblue.lib.umich.edu/bitstream/2027.42/57214/1/wp834 .pdfen_US
dc.owningcollnameWilliam Davidson Institute (WDI) - Working Papers


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