Additional evidence on equity ownership and corporate value

@article{McConnell1990AdditionalEO,
  title={Additional evidence on equity ownership and corporate value},
  author={John J. McConnell and Henri Servaes},
  journal={Journal of Financial Economics},
  year={1990},
  volume={27},
  pages={595-612}
}
  • John J. McConnell, Henri Servaes
  • Published 1990
  • Economics
  • Journal of Financial Economics
  • Abstract We investigate the relation between Tobin's Q and the structure of equity ownership for a sample of 1,173 firms for 1976 and 1,093 firms for 1986. We find a significant curvilinear relation between Q and the fraction of common stock owned by corporate insiders. The curve slopes upward until insider ownership reaches approximately 40% to 50% and then slopes slightly downward. We also find a significant positive relation between Q and the fraction of shares owned by institutional… CONTINUE READING
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