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Management ownership and market valuation

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  • Morck, Randall
  • Shleifer, Andrei
  • Vishny, Robert W.

Abstract

We investigate the relation between management ownership and corporate performance, as measured by Tobin's Q. In a cross-section of Fortune 500 firms, Tobin's Q first increases and then declines as board of directors holdings rise. For older firms there is weak evidence that Q is lower when a firm is run by a member of the founding family than when it is run by an officer unrelated to the founder.

Suggested Citation

  • Morck, Randall & Shleifer, Andrei & Vishny, Robert W., 1988. "Management ownership and market valuation," Scholarly Articles 29407535, Harvard University Department of Economics.
  • Handle: RePEc:hrv:faseco:29407535
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    References listed on IDEAS

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