Ownership Structure, Insiders Ownership and Firm Performance in Spanish Non-Listed Firms

35 Pages Posted: 31 Jul 2010

See all articles by Blanca Arosa

Blanca Arosa

University of the Basque Country

Txomin Iturralde

University of the Basque Country - Department of Financial Economics II

Amaia Maseda

University of Basque Country UPV/EHU

Date Written: November 13, 2009

Abstract

This study provides new evidence on the way in which ownership concentration and insider ownership influence non-listed firms performance, differentiating the behaviour of family and non-family firms using data on 586 non-listed Spanish firms. The empirical evidence shows that for family firms the relationship between ownership concentration and firm performance differs depending on which generation manages the firms. Confirmation is found of the monitoring effect and also the expropriation effect for the very highest ownership concentration in non-listed Spanish family firms. Concerning insider ownership, our evidence supports both the convergence of interest and the entrenchment effects, and suggests that Spanish family firms’ insiders become entrenched at higher ownership levels.

Keywords: ownership concentration, insider ownership, non-listed firms, family firms

JEL Classification: G32

Suggested Citation

Arosa, Blanca and Iturralde, Txomin and Maseda, Amaia, Ownership Structure, Insiders Ownership and Firm Performance in Spanish Non-Listed Firms (November 13, 2009). Available at SSRN: https://ssrn.com/abstract=1505308 or http://dx.doi.org/10.2139/ssrn.1505308

Blanca Arosa (Contact Author)

University of the Basque Country ( email )

Barrio Sarriena s/n
Leioa, Bizkaia 48940
Spain

Txomin Iturralde

University of the Basque Country - Department of Financial Economics II ( email )

Avenida del Lehendakari Agirre 83
48015 Bilbao
Spain

Amaia Maseda

University of Basque Country UPV/EHU ( email )

Avenida del Lehendakari Agirre 83
Bilbao, 48015
Spain

HOME PAGE: http://https://www.ehu.eus/es/web/catedra-empresa-familiar/amaia.maseda

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