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Blockholder dispersion and firm value

Listed author(s):
  • Konijn, Sander J.J.
  • Kräussl, Roman
  • Lucas, Andre

Multiple blockholder structures are a widespread phenomenon in the U.S. The theoretical literature, however, provides conflicting predictions on whether a single large blockholder or a set of dispersed smaller blockholders is better for firm value. Using U.S. data, we find a negative correlation between Tobin's Q and blockholder dispersion. The findings are robust to a wide variety of model specifications and controls and differ from results for other geographic regions such as Europe and Asia.

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File URL: http://www.sciencedirect.com/science/article/pii/S0929119911000642
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Article provided by Elsevier in its journal Journal of Corporate Finance.

Volume (Year): 17 (2011)
Issue (Month): 5 ()
Pages: 1330-1339

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Handle: RePEc:eee:corfin:v:17:y:2011:i:5:p:1330-1339
DOI: 10.1016/j.jcorpfin.2011.06.005
Contact details of provider: Web page: http://www.elsevier.com/locate/jcorpfin

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