Ownership Concentration And Firm Value A Panel Data Analysis On The Impact Of Ownership Concentration On Firm Value

Abstract

This study examines the impact of ownership concentration on frm value. This study fnds a negative and signifcant relationship between ownership concentration (measured by aggregate substantial shareholdings and the presence of controlling shareholders) and frm value. This suggests that large or controlling shareholders can extract the private benefts of control which in turn leads to lower frm value. The results support the rent extraction hypothesis, but not the agency relationship.