Work

Banks as firms’ blockholders: a study in Spain

Year: 2010

Type: article

Abstract: This article analyses how a firm's returns are affected when a bank becomes a large blockholder. We investigate this issue by taking into consideration the types of blockholders that build coalitions with banks in order to control a firm. We find that the effect on a firm's returns is negative when a bank buys the largest stake and forms coalitions with other banks. However, this negative effect does not apply in other situations. We underscore our theoretical conjectures based on an empirical analysis of a panel dataset comprising a representative sample of listed and unlisted Spanish firms over the period 1996 to 2000.

Source: Applied Financial Economics

DOI: 10.1080/09603100903459758

Authors: Josep A. Tribó Giné, María José Casasola Martínez

Institution: Universidad Carlos III de Madrid

Language: English

Topic: Corporate Finance and Governance

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: green

Funders: Comunidad de Madrid, Ministerio de Economía y Competitividad

Awards: G214151060, G340644106