Purpose – Conventional studies discuss the effect of managerial ownership on firm performance and have conflicting findings. This paper seeks to find divergent mutual effects existing between managerial ownership and firm performance. Design/methodology/approach – The three-stage-least...

Purpose – Conventional studies discuss the effect of managerial ownership on firm performance and have conflicting findings. This paper seeks to find divergent mutual effects existing between managerial ownership and firm performance. Design/methodology/approach – The three‐stage‐least...

When a private-held firm goes public through an IPO (initial public offering) process, the managerial ownership of the IPO firm declines due to external equity financing. The effects of dilution of ownership structure on firm performance are different with respect to the agency theory and...

This paper indicates that there is an inverse relationship between collateralised shares and firm performance. We further show that this inverse relationship exists only in conglomerate firms. These findings imply that agency problems resulting from shares used as collateral by boards of...