Essays on the Costs and Benefits of Large Shareholders in Corporate Governance (summary section only)
Contribuinte(s) |
Svenska handelshögskolan, Institutionen för finansiell ekonomi och ekonomisk statistik, finansiell ekonomi Swedish School of Economics and Business Administration, Department of Finance and Statistics, Finance |
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Data(s) |
14/05/2004
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Resumo |
“Corporate governance deals with the ways in which suppliers of finance to firms assure themselves of getting a return on their investment” (Shleifer and Vishny (1997, p. 737). According to La Porta et al. (1999), research in corporate finance relevant for most countries should focus on the incentives and capabilities of controlling shareholders to treat themselves preferentially at the expense of minority shareholders. Accordingly, this thesis sets out to answer a number of research questions regarding the role of large shareholders in public firms that have received little attention in the literature so far. A common theme in the essays stems from the costs and benefits of individual large-block owners and the role of control contestability from the perspective of outside minority shareholders. The first essay empirically examines whether there are systematic performance differences between family controlled and nonfamily controlled firms in Western Europe. In contrast to the widely held view that family control penalizes firm value, the essay shows that publicly traded family firms have higher performance than comparable firms. In the second essay, we present both theoretical and empirical analysis on the effects of control contestability on firm valuation. Consistent with the theoretical model, the empirical results show that minority shareholders benefit from a more contestable control structure. The third essay explores the effects of individual large-block owners on top management turnover and board appointments in Finnish listed firms. The results indicate that firm performance is an important determinant for management and board restructurings. For certain types of turnover decisions the corporate governance structure influences the performance / turnover sensitivity. In the fourth essay, we investigate the relation between the governance structure and dividend policy in Finnish listed firms. We find evidence in support of the outcome agency model of dividends stating that lower agency conflicts should be associated with higher dividend payouts. |
Formato |
1837 bytes 118502 bytes application/pdf text/plain |
Identificador |
http://hdl.handle.net/10227/99 URN:ISBN:951-555-830-1 951-555-830-1 |
Idioma(s) |
en |
Publicador |
Svenska handelshögskolan Swedish School of Economics and Business Administration |
Relação |
Economics and Society 127 |
Direitos |
Publikationen är skyddad av upphovsrätten. Den får läsas och skrivas ut för personligt bruk. Användning i kommersiellt syfte är förbjuden. This publication is copyrighted. You may download, display and print it for Your own personal use. Commercial use is prohibited. Julkaisu on tekijänoikeussäännösten alainen. Teosta voi lukea ja tulostaa henkilökohtaista käyttöä varten. Käyttö kaupallisiin tarkoituksiin on kielletty. |
Palavras-Chave | #corporate governance #ownership structure #agency conflicts #valuation #controlling shareholders #family firms #multiple blockholders #management turnover #board turnover #dividend policy #Finance |
Tipo |
Doctoral thesis Väitöskirja Doktorsavhandling Text |