Managerial Ownership and Corporate Value: Evidence from an Endogenous Perspective
Year: 2007
Type: preprint
Abstract: This paper investigates whether managerial ownership is a determinant of corporate value after accounting for two potential types of endogeneity. First, the one created from 'reverse' causality between directors' shareholdings and corporate value, and second, endogeneity that arises from omitted variables that impact on both dependent and independent variables. After controlling for both types of endogeneity, there is no evidence of a significant effect of managerial ownership on corporate value. It is shown that inconsistent results might be obtained when endogeneity that arises from omitted variables is not controlled.
Source: SSRN Electronic Journal
Author: Jannine Poletti‐Hughes
Institution: University of Liverpool
Language: English
Subfield: Finance
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W1573606984