• Corpus ID: 202625965

Managerial ownership and firm performance : A re-examination using marginal conditional stochastic dominance

@inproceedings{Belghitar2011ManagerialOA,
  title={Managerial ownership and firm performance : A re-examination using marginal conditional stochastic dominance},
  author={Yacine Belghitar},
  year={2011}
}

• Yacine Belghitar
• Published 2011
• Business

There is an extensive literature on the relationship between managerial ownership and firm performance. Most studies examining the effect of managerial ownership on firm performance use stock returns, accounting profits or Tobin’s Q as a performance proxy without accounting for risk. The present study proposes a new measure which captures stock performance adjusted for risk in a single variable. This measure is general enough to apply to all risk averse investors, irrespective of their utility function. Our findings suggest that low and high levels of managerial ownership hinder firm performance, while intermediate levels of managerial ownership enhance it. JEL Classification: G30, G32