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Ownership structure and firm value: new evidence from Spain
Author(s) -
de Miguel Alberto,
Pindado Julio,
de la Torre Chabela
Publication year - 2004
Publication title -
strategic management journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 11.035
H-Index - 286
eISSN - 1097-0266
pISSN - 0143-2095
DOI - 10.1002/smj.430
Subject(s) - expropriation , insider , empirical evidence , value (mathematics) , enterprise value , business , convergence (economics) , accounting , economics , monetary economics , financial economics , industrial organization , market economy , macroeconomics , political science , law , mathematics , statistics , philosophy , epistemology
This paper provides new evidence on the way in which ownership influences firm value. Unlike previous studies, the empirical evidence obtained from our ownership concentration model supports not only the monitoring but also the expropriation effects. Additionally, the insider ownership model provides results that confirm the convergence‐of‐interest and the entrenchment effects, even though Spanish insiders get entrenched at higher ownership levels than their U.S. and U.K. counterparts. Copyright © 2004 John Wiley & Sons, Ltd.