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Blockholder dispersion and firm value

Author

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  • Konijn, Sander J.J.
  • Kräussl, Roman
  • Lucas, Andre

Abstract

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.

Suggested Citation

  • Konijn, Sander J.J. & Kräussl, Roman & Lucas, Andre, 2011. "Blockholder dispersion and firm value," Journal of Corporate Finance, Elsevier, vol. 17(5), pages 1330-1339.
    • Handle: RePEc:eee:corfin:v:17:y:2011:i:5:p:1330-1339
    DOI: 10.1016/j.jcorpfin.2011.06.005
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    More about this item

    Keywords

    Corporate governance; Ownership structure; Multiple blockholder structures; Firm value;
    All these keywords.

    JEL classification:

    • G3 - Financial Economics - - Corporate Finance and Governance
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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