Insider Ownership and the Value of the Bucharest Stock Exchange Listed Companies: Convergence-of-Interest or Entrenchment Effect?
The aim of this paper is to provide empirical evidence regarding the effect of insider ownership on firm value which stems from the lack of such study for the case of Romania. By using a sample of companies listed on the Bucharest Stock Exchange, over the period 2007-2011, our results showed a nega...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
EconJournals
2013-12-01
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| Series: | International Journal of Economics and Financial Issues |
| Online Access: | http://mail.econjournals.com/index.php/ijefi/article/view/650 |
| _version_ | 1797908117318533120 |
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| author | Georgeta Vintila Stefan Cristian Gherghina |
| author_facet | Georgeta Vintila Stefan Cristian Gherghina |
| author_sort | Georgeta Vintila |
| collection | DOAJ |
| description |
The aim of this paper is to provide empirical evidence regarding the effect of insider ownership on firm value which stems from the lack of such study for the case of Romania. By using a sample of companies listed on the Bucharest Stock Exchange, over the period 2007-2011, our results showed a negative effect of insider shareholdings on firm value. Likewise, the negative effect on firm value was confirmed for insider ownership one-year lagged. Thereby, unconcerned to the level of shareholdings, we ascertained the entrenchment effect, opposite to the goal of shareholders wealth maximization.
Keywords: corporate governance; agency theory; insider ownership; firm value; panel data regression models
JEL Classifications: G32; G34
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| first_indexed | 2024-04-10T10:48:43Z |
| format | Article |
| id | doaj.art-5bddd286b7bc4d92beb98b269cd0a24a |
| institution | Directory Open Access Journal |
| issn | 2146-4138 |
| language | English |
| last_indexed | 2024-04-10T10:48:43Z |
| publishDate | 2013-12-01 |
| publisher | EconJournals |
| record_format | Article |
| series | International Journal of Economics and Financial Issues |
| spelling | doaj.art-5bddd286b7bc4d92beb98b269cd0a24a2023-02-15T16:20:14ZengEconJournalsInternational Journal of Economics and Financial Issues2146-41382013-12-0141Insider Ownership and the Value of the Bucharest Stock Exchange Listed Companies: Convergence-of-Interest or Entrenchment Effect?Georgeta Vintila0Stefan Cristian Gherghina1The Bucharest University of Economic StudiesThe Bucharest University of Economic Studies The aim of this paper is to provide empirical evidence regarding the effect of insider ownership on firm value which stems from the lack of such study for the case of Romania. By using a sample of companies listed on the Bucharest Stock Exchange, over the period 2007-2011, our results showed a negative effect of insider shareholdings on firm value. Likewise, the negative effect on firm value was confirmed for insider ownership one-year lagged. Thereby, unconcerned to the level of shareholdings, we ascertained the entrenchment effect, opposite to the goal of shareholders wealth maximization. Keywords: corporate governance; agency theory; insider ownership; firm value; panel data regression models JEL Classifications: G32; G34 http://mail.econjournals.com/index.php/ijefi/article/view/650 |
| spellingShingle | Georgeta Vintila Stefan Cristian Gherghina Insider Ownership and the Value of the Bucharest Stock Exchange Listed Companies: Convergence-of-Interest or Entrenchment Effect? International Journal of Economics and Financial Issues |
| title | Insider Ownership and the Value of the Bucharest Stock Exchange Listed Companies: Convergence-of-Interest or Entrenchment Effect? |
| title_full | Insider Ownership and the Value of the Bucharest Stock Exchange Listed Companies: Convergence-of-Interest or Entrenchment Effect? |
| title_fullStr | Insider Ownership and the Value of the Bucharest Stock Exchange Listed Companies: Convergence-of-Interest or Entrenchment Effect? |
| title_full_unstemmed | Insider Ownership and the Value of the Bucharest Stock Exchange Listed Companies: Convergence-of-Interest or Entrenchment Effect? |
| title_short | Insider Ownership and the Value of the Bucharest Stock Exchange Listed Companies: Convergence-of-Interest or Entrenchment Effect? |
| title_sort | insider ownership and the value of the bucharest stock exchange listed companies convergence of interest or entrenchment effect |
| url | http://mail.econjournals.com/index.php/ijefi/article/view/650 |
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