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Large shareholders and firm value: Are high-tech firms different?

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Author Info
Irena Grosfeld

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Abstract

This paper explores the relationship between ownership structure and firm value in a transition economy. It distinguishes firms belonging to the sector of innovative technologies and firms from more "traditional" industries. For the latter, the results of the estimation of a simultaneous equations system give support to the hypothesis that strong monitoring and ownership concentration are beneficial for firm performance. They also show that in high-tech firms, higher ownership concentration does not improve firm performance. The sample consists of all non-financial firms listed on the Warsaw Stock Exchange since its creation in 1991.

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Paper provided by PSE (Ecole normale supérieure) in its series PSE Working Papers with number 2007-26.

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Date of creation: 2007
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Handle: RePEc:pse:psecon:2007-26

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