Concentration of ownership and corporate performance: evidence from the Zagreb Stock Exchange
This study examines the relationship between ownership structure and firm performance using a sample of firms listed on the Zagreb Stock Exchange in period 2003-2009. The results obtained using a panel estimation with fixed effects show a significant negative relationship between the existence of a block holder owning more than 30% of the equity and the value of the firm’s Tobin’s Q. However, if there is a family-type second block holder, the effect disappears. Further, the study gives evidence of the negative impact of the fraction of equity owned by management on labor efficiency confirming the quiet-life hypothesis from Bertrand and Mullainathan (2003). Finally, it is shown that foreign ownership is not significantly better than domestic.
Year of publication: |
2012
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Authors: | Dzanic, Alen |
Published in: |
Financial Theory and Practice. - Institut za javne financije. - Vol. 36.2012, 1, p. 29-52
|
Publisher: |
Institut za javne financije |
Subject: | ownership structure | ownership concentration | Tobin’s Q | return on equity | labor efficiency | block holder | management ownership | Croatia | Zagreb Stock Exchange |
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