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Equity sales in Belgian corporate groups: Expropriationof minority shareholders?


  • DELOOF, Marc
  • JEGERS, Marc


In Belgian corporate groups, complex pyramidal structures and interlocking ownership lead to separation of ownership and control. This may generate incentives for the controlling shareholder to divert resources within the group through intragroup equity sales. This in turn could lead to significant private benefits at the expense of the minority shareholders. We test this hypothesis by investigating the stock price reaction to the announcement of equity sales in Belgian groups. Our results suggest that intragroup equity sales create value for minority shareholders. Equity sales between group members and non-group members do not seem to affect the value for minority shareholders in Belgian groups.

Suggested Citation

  • BUYSSCHAERT, An & DELOOF, Marc & JEGERS, Marc, "undated". "Equity sales in Belgian corporate groups: Expropriationof minority shareholders?," Working Papers 2001034, University of Antwerp, Faculty of Applied Economics.
  • Handle: RePEc:ant:wpaper:2001034

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    JEL classification:

    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance


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