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Large shareholders, bank ownership and informativeness of earnings


  • Víctor M. González Méndez

    (Universidad de Oviedo)


This paper analyses the influence of large shareholders and bank ownership on earnings informativeness, measured by the earnings-return relation, in Spain. The results suggest that the expropriation effect is dominant at any level of ownership concentration. Furthermore, bank ownership is positively associated with the explanatory power of earnings for returns, being consistent with the role of banks as shareholders that actively monitor the firm’s business performance. This effect is similar regardless of whether the bank is the major shareholder of the firm or not.

Suggested Citation

  • Víctor M. González Méndez, 2009. "Large shareholders, bank ownership and informativeness of earnings," Revista de Economia Aplicada, Universidad de Zaragoza, Departamento de Estructura Economica y Economia Publica, vol. 17(3), pages 81-102, Winter.
  • Handle: RePEc:rev:reveca:v:17:y:2009:i:3:p:81-102

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    References listed on IDEAS

    1. Ruiz-Castillo, Javier, 2007. "La medición de la desigualdad de la renta : una revisión de la literatura," DE - Documentos de Trabajo. Economía. DE de20070222, Universidad Carlos III de Madrid. Departamento de Economía.
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    3. Goerlich Gisbert Francisco J. & Villar Notario Antonio, 2009. "Desigualdad y bienestar social: de la teoría a la práctica," Books, Fundacion BBVA / BBVA Foundation, edition 0, number 201190, December.
    4. Claude d' Aspremont, 1994. "Welfarism and interpersonal comparisons," Investigaciones Economicas, Fundación SEPI, vol. 18(1), pages 3-17, January.
    5. Ebert, Udo, 1987. "Size and distribution of incomes as determinants of social welfare," Journal of Economic Theory, Elsevier, vol. 41(1), pages 23-33, February.
    6. Dutta, B. & Esteban, J., 1988. "Social Welfare And Equality," UFAE and IAE Working Papers 89.88, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
    7. Goerlich, Francisco José & Mas, Matilde, 2004. "Three (Marginal?) Questions Regarding Convergence," MPRA Paper 15876, University Library of Munich, Germany, revised 2004.
    8. Coral del RÎo & Javier Ruiz-Castillo, 2000. "Intermediate inequality and welfare," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 17(2), pages 223-239.
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    More about this item


    Informativeness of earnings; large shareholders; bank ownership; monitoring effect; expropriation effect;

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • M40 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - General


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