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
Date Written: March 6, 2018
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
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