Additional evidence on equity ownership and corporate value

  title={Additional evidence on equity ownership and corporate value},
  author={John J. McConnell and Henri Servaes},
  journal={Journal of Financial Economics},
  • 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
    4,166 Citations

    Figures and Tables from this paper


    The Structure of Corporate Ownership: Causes and Consequences
    • 5,917
    • PDF
    Large Shareholders and Corporate Control
    • 6,902
    • PDF
    Ownership structure and voting on antitakeover amendments
    • 1,310
    Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure
    • 48,582
    • Highly Influential
    • PDF
    The role of majority shareholders in publicly held corporations: An exploratory analysis
    • 1,223
    • PDF