The Causal Relationship Between Insider Ownership, Owner Identity, and Market Valuation Among the Largest European Companies

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dc.contributor.author	Pedersen, Torben	en_US
dc.contributor.author	Thomsen, Steen	en_US
dc.date.accessioned	2009-02-04T10:23:57Z
dc.date.available	2009-02-04T10:23:57Z
dc.date.issued	2001-09-19T00:00:00Z	en_US
dc.identifier.uri	http://hdl.handle.net/10398/6535
dc.description.abstract	The causal relationship between insider ownership and market valuation is tested by simultaneous estimation of the causes and effect of insider ownership among the largest continental European companies. Controlling for nation and industry effects insider ownership (measured by the fraction of "closely held" shares) is found to have a positive effect on market valuation (market-to-book values). And market valuation is found to have a positive feedback effect on the level of insider ownership. The findings provide empirical support for a theoretical model proposed by La Porta et al (1999). But the results are also found to be sensitive to owner identity: while a higher level of financial and corporate insider ownership is found to increase market valuation, family ownership has no significant effect, and a higher level of government ownership is found to reduce market valuation.	en_US
dc.format.extent	36 s.	en_US
dc.language	eng	en_US
dc.relation.ispartofseries	LINK Working paper;2001-13	en_US
dc.subject.other	europa	en_US
dc.subject.other	største virksomheder	en_US
dc.subject.other	virksomhedens ejerskab	en_US
dc.subject.other	værdiansættelse-virksomheder	en_US
dc.subject.other	market valuation	en_US
dc.subject.other	owner identity	en_US
dc.title	The Causal Relationship Between Insider Ownership, Owner Identity, and Market Valuation Among the Largest European Companies	en_US
dc.type	wp	en_US
dc.accessionstatus	KAT01sep19 inru	en_US
dc.contributor.corporation	Copenhagen Business School. CBS
dc.contributor.department	Institut for International Økonomi og Virksomhedsledelse	en_US
dc.contributor.departmentshort	INT	en_US
dc.contributor.departmentuk	Department of International Economics and Management	en_US
dc.contributor.departmentukshort	INT
dc.description.notes	Også som working paper 2001-15	en_US
dc.idnumber	x656100930	en_US
dc.publisher.city	København	en_US
dc.publisher.year	2001	en_US