Please use this identifier to cite or link to this item: https://ptsldigital.ukm.my/jspui/handle/123456789/783750
Title: Equity ownership and corporate value
Authors: John J. McConnell
Henri Servaes
Conference Name: Pacific-Basin Finance Conference
Keywords: Equity
Corporate value
Conference Date: 1990-06-04
Conference Location: Bangkok, Thailand
Abstract: This paper investigates empirically the relation between Tobin's Q and the structure of equity ownership for a sample of 1173 firms for 1976 and 1093 firms for 1986. We find a significant quadratic relation between Q and the fraction of common stock owned by corporate insiders. The curve slopes upward until insider ownership reaches approximately 40% to 50% and then slopes downward. Additionally, we find a significant positive relation between Q and the fraction of shares owned by institutional investors. The results are consistent with the argument that corporate value is a function of equity ownership structure.
Pages: 50
Call Number: HC681.P338 1990 katsem
URI: https://ptsldigital.ukm.my/jspui/handle/123456789/783750
Appears in Collections:Seminar Papers/ Proceedings / Kertas Kerja Seminar/ Prosiding

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