Insiders ownership and firm value in Southern Europe

The effectiveness of the insider ownership as an internal governance mechanism is addressed in the Southern European context using a sample of publicly traded firms during the 2001-2007 period. A cross country and panel data design is used, taking into account the endogeneity problem arising in stud...

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Authors: García Ramos, Rebeca|||0000-0001-6844-0190, García Olalla, Myriam|||0000-0001-5106-8820
Format: article
Publication Date:2012
Country:España
Institution:Universidad de Cantabria (UC)
Repository:UCrea Repositorio Abierto de la Universidad de Cantabria
Language:English
OAI Identifier:oai:repositorio.unican.es:10902/21039
Online Access:http://hdl.handle.net/10902/21039
Access Level:Open access
Keyword:Corporate Governance
Insider Ownership
Large Family Shareholder
Firm Value
Endogeneity
Listed Firms
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oai_identifier_str oai:repositorio.unican.es:10902/21039
network_acronym_str ES
network_name_str España
repository_id_str
spelling Insiders ownership and firm value in Southern EuropeGarcía Ramos, Rebeca|||0000-0001-6844-0190García Olalla, Myriam|||0000-0001-5106-8820Corporate GovernanceInsider OwnershipLarge Family ShareholderFirm ValueEndogeneityListed FirmsThe effectiveness of the insider ownership as an internal governance mechanism is addressed in the Southern European context using a sample of publicly traded firms during the 2001-2007 period. A cross country and panel data design is used, taking into account the endogeneity problem arising in studies of corporate governance. The results provide new evidence of the influence of the insider ownership on firm value by testing a non-linear relationship. Our study supports both the convergence of interests and the entrenchment effect. It also shows whether there are significant differences in the estimated relationship between family and non family firms. We find that when the large shareholder has not a family nature, firm value initially declines with insider ownership, then increases, and, finally, increases again. However, when the large shareholder has a family nature, firm value initially increases with insider ownership and then decreases.Virtus InterpressUniversidad de Cantabria20122012-01-01journal articlehttp://purl.org/coar/resource_type/c_6501NAhttp://purl.org/coar/version/c_be7fb7dd8ff6fe43info:eu-repo/semantics/articlehttp://hdl.handle.net/10902/21039Corporate Ownership & Control / Volume 9, Issue 2, 2012, Continued - 5, 498-510reponame:UCrea Repositorio Abierto de la Universidad de Cantabriainstname:Universidad de Cantabria (UC)Inglésengopen accesshttp://purl.org/coar/access_right/c_abf2Attribution 4.0 Internationalhttp://creativecommons.org/licenses/by/4.0/info:eu-repo/semantics/openAccessoai:repositorio.unican.es:10902/210392026-06-02T12:39:31Z
dc.title.none.fl_str_mv Insiders ownership and firm value in Southern Europe
title Insiders ownership and firm value in Southern Europe
spellingShingle Insiders ownership and firm value in Southern Europe
García Ramos, Rebeca|||0000-0001-6844-0190
Corporate Governance
Insider Ownership
Large Family Shareholder
Firm Value
Endogeneity
Listed Firms
title_short Insiders ownership and firm value in Southern Europe
title_full Insiders ownership and firm value in Southern Europe
title_fullStr Insiders ownership and firm value in Southern Europe
title_full_unstemmed Insiders ownership and firm value in Southern Europe
title_sort Insiders ownership and firm value in Southern Europe
dc.creator.none.fl_str_mv García Ramos, Rebeca|||0000-0001-6844-0190
García Olalla, Myriam|||0000-0001-5106-8820
author García Ramos, Rebeca|||0000-0001-6844-0190
author_facet García Ramos, Rebeca|||0000-0001-6844-0190
García Olalla, Myriam|||0000-0001-5106-8820
author_role author
author2 García Olalla, Myriam|||0000-0001-5106-8820
author2_role author
dc.contributor.none.fl_str_mv Universidad de Cantabria
dc.subject.none.fl_str_mv Corporate Governance
Insider Ownership
Large Family Shareholder
Firm Value
Endogeneity
Listed Firms
topic Corporate Governance
Insider Ownership
Large Family Shareholder
Firm Value
Endogeneity
Listed Firms
description The effectiveness of the insider ownership as an internal governance mechanism is addressed in the Southern European context using a sample of publicly traded firms during the 2001-2007 period. A cross country and panel data design is used, taking into account the endogeneity problem arising in studies of corporate governance. The results provide new evidence of the influence of the insider ownership on firm value by testing a non-linear relationship. Our study supports both the convergence of interests and the entrenchment effect. It also shows whether there are significant differences in the estimated relationship between family and non family firms. We find that when the large shareholder has not a family nature, firm value initially declines with insider ownership, then increases, and, finally, increases again. However, when the large shareholder has a family nature, firm value initially increases with insider ownership and then decreases.
publishDate 2012
dc.date.none.fl_str_mv 2012
2012-01-01
dc.type.none.fl_str_mv journal article
http://purl.org/coar/resource_type/c_6501
NA
http://purl.org/coar/version/c_be7fb7dd8ff6fe43
dc.type.openaire.fl_str_mv info:eu-repo/semantics/article
format article
dc.identifier.none.fl_str_mv http://hdl.handle.net/10902/21039
url http://hdl.handle.net/10902/21039
dc.language.none.fl_str_mv Inglés
eng
language_invalid_str_mv Inglés
language eng
dc.rights.none.fl_str_mv open access
http://purl.org/coar/access_right/c_abf2
Attribution 4.0 International
http://creativecommons.org/licenses/by/4.0/
dc.rights.openaire.fl_str_mv info:eu-repo/semantics/openAccess
rights_invalid_str_mv open access
http://purl.org/coar/access_right/c_abf2
Attribution 4.0 International
http://creativecommons.org/licenses/by/4.0/
eu_rights_str_mv openAccess
dc.publisher.none.fl_str_mv Virtus Interpress
publisher.none.fl_str_mv Virtus Interpress
dc.source.none.fl_str_mv Corporate Ownership & Control / Volume 9, Issue 2, 2012, Continued - 5, 498-510
reponame:UCrea Repositorio Abierto de la Universidad de Cantabria
instname:Universidad de Cantabria (UC)
instname_str Universidad de Cantabria (UC)
reponame_str UCrea Repositorio Abierto de la Universidad de Cantabria
collection UCrea Repositorio Abierto de la Universidad de Cantabria
repository.name.fl_str_mv
repository.mail.fl_str_mv
_version_ 1869406816929054720
score 15,300719

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