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Ownership Strucure ad the Performance of Belgian Listed Firms

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Author Info
Malika HAMADI (UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES))
Abstract

In this study we investigate empirically the relationship between ownership structure of Belgian listed firms, and their performance measured by TobinÕs Q. We focus on the management and the largest shareholders equity ownership. We use first a cross-sectional estimation from 1991 to 1996. Second, we use panel data estimation to control whether the results found cross-sectionally are not due to unobserved firm heteroeneity. The use of panel data confirms the results obtained cross-sectionally for managerial ownership, that is, the relationship between the fraction of equities held by managers and TobinÕs Q is negative. However, panel data results for the relationship between largest sharholders equities ownership and TobinÕs Q become positive, while it is negative cross-sectionally. These results indicate that there is firm heterogeneity which is not captured in the cross-section estimation.

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Paper provided by Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES) in its series Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) with number 2002015.

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Length: 35
Date of creation: 01 May 2002
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Handle: RePEc:ctl:louvir:2002015

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Related research
Keywords: Corporate governance; managerial ownership; largest shareholders ownership; firm performance; TobinÕsQ; cross-sectional models; panel data;

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Find related papers by JEL classification:
C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data
D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Capital and Ownership Structure

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