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

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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


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