Ownership Concentration and Firm Performance: The Moderating Effect of the Monitoring and Provision Of Resources Board Roles

Spanish Journal of Finance and Accounting, Forthcoming

36 Pages Posted: 6 Mar 2018

See all articles by Jaime Guerrero-Villegas

Jaime Guerrero-Villegas

Universidad Pablo de Olavide

Pilar Giráldez-Puig

Universidad Pablo de Olavide

Leticia Pérez-Calero

University Pablo Olavide of Seville

José Manuel Hurtado

Universidad Pablo de Olavide

Date Written: March 6, 2018

Abstract

This paper explores the effect that the monitoring and the provision of resources board roles have on the relationship between ownership concentration and firm performance. The sample of this study is made up of 579 European firms registered on the STOXX Europe 600 index during the period 2002-2011. The results of this study show that the monitoring provided by the board positively influences the effect that ownership concentration has on performance. The results also highlight that the moderating effect of the provision of resources role has a positive influence on firm performance concerning almost all levels of ownership concentration, diminishing and having slightly negative effects when the concentration levels are extremely high.

Keywords: ownership concentration, firm performance, board of directors, monitoring role, provision of resources role

Suggested Citation

Guerrero-Villegas, Jaime and Giráldez-Puig, María PILAR and Pérez-Calero, Leticia and Hurtado-Gonzalez, Jose-Manuel, Ownership Concentration and Firm Performance: The Moderating Effect of the Monitoring and Provision Of Resources Board Roles (March 6, 2018). Spanish Journal of Finance and Accounting, Forthcoming. Available at SSRN: https://ssrn.com/abstract=3135293 or http://dx.doi.org/10.2139/ssrn.3135293

Jaime Guerrero-Villegas

Universidad Pablo de Olavide ( email )

Ctra. Utrera, Km.1
Sevilla, Seville 41010
Spain

María PILAR Giráldez-Puig

Universidad Pablo de Olavide ( email )

Ctra. Utrera, Km.1
Sevilla, Seville 41010
Spain

Leticia Pérez-Calero

University Pablo Olavide of Seville ( email )

Seville
Spain

Jose-Manuel Hurtado-Gonzalez (Contact Author)

Universidad Pablo de Olavide ( email )

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