Title :

Does stable ownership create value? Evidence from the global financial crisis

Author(s) :

Lardon, Andy [Auteur]
Beuselinck, Christof [Auteur]
Lille - Economie et Management [LEM]
Lille économie management - UMR 9221 [LEM]
Deloof, Marc [Auteur]

Journal title :

Review of Quantitative Finance and Accounting

Pages :

573-642

Publisher :

Springer Verlag

Publication date :

2019-02

ISSN :

0924-865X

English keyword(s) :

Ownership stability
Family ownership
Institutional ownership
Global financial crisis
Firm value
Investments

HAL domain(s) :

Sciences de l'Homme et Société/Gestion et management

English abstract : [en]

We investigate the value of stable ownership for a sample of European firms using the global financial crisis as an exogenous shock and pre-and post-crisis years as benchmark periods. Consistent with the argument that ...
Show more >We investigate the value of stable ownership for a sample of European firms using the global financial crisis as an exogenous shock and pre-and post-crisis years as benchmark periods. Consistent with the argument that stable ownership allows managers to focus on the creation of long-term value, we find that stable ownership resulted in higher stock returns and a higher market-to-book ratio during the crisis. This positive effect of stable ownership was not reversed after the crisis. Stable institutional blockholdings were more valuable in countries with weaker investor protection. However, the positive effect does not apply to firms in which a family is the largest blockholder. Finally, we also find that ownership stability was associated with a higher level of investments, illustrating that stable ownership affects real corporate decisions.Show less >

Language :

Anglais

Popular science :

Non

Collections :

• Lille Économie Management (LEM) - UMR 9221

Source :

Harvested from HAL