Further Evidence on the Relationship Between Ownership and Performance

The objective of this paper is to extend prior research into the relationship between ownership and performance while controlling for the known market anomalies of firm size and earnings to price. The empirical results do support recent works indicating a positive relationship between the degree of...

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Bibliographic Details
Published in:The Financial review (Buffalo, N.Y.) N.Y.), 1992-05, Vol.27 (2), p.227-239
Main Authors: Hudson, Carl D., Jahera Jr, John S., Lloyd, William P.
Format: Article
Language:English
Subjects:
Price earnings ratio
Statistical analysis
Studies
Variables
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Summary:The objective of this paper is to extend prior research into the relationship between ownership and performance while controlling for the known market anomalies of firm size and earnings to price. The empirical results do support recent works indicating a positive relationship between the degree of insider ownership and performance. Using a piecewise regression model, both size and ownership are found to be significant. An additional finding of the paper supplements several recent works questioning the earlier works of Basu [6, 7].
ISSN:0732-8516
1540-6288
DOI:10.1111/j.1540-6288.1992.tb01315.x