Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/92690
Authors: 
Lee, Sang-Mook
Ryu, Keunkwan
Year of Publication: 
2003
Series/Report no.: 
ISER Discussion Paper, Institute of Social and Economic Research, Osaka University 593
Abstract: 
Demsetz and Lehn (1985), Morck, Shleifer, and Vishny (1988), and McConnell and Servaes (1990) report different empirical findings regarding ownership structure and corporate profitability. In this paper, we re-estimate the relation between management ownership and firm's value after controlling for the history of management ownership as well as inter-firm differences using panel data. Further, we consider the possibility that the current ownership structure is jointly determined with the firm value, an endogeneity argument a la Demsetz (1983). We find that history of the management ownership, not its current level, matters in determining the firm value, which is consistent with information asymmetry arguments.
Subjects: 
convergence-of-interest
endogeneity
entrenchment
firm value
information asymmetry
insider ownership
panel data
JEL: 
C23
C81
D23
Document Type: 
Working Paper

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