How Does Ownership Structure Affect Firm Value? A Comparison Using Different Corporate Governance Systems

32 Pages Posted: 23 Dec 2003

See all articles by Alberto de Miguel

Alberto de Miguel

University of Salamanca - Administration and Business Economics

Julio Pindado

University of Salamanca - Administration and Business Economics

Chabela de la Torre

University of Salamanca - Administration and Business Economics

Date Written: December 9, 2003

Abstract

This paper studies how the main institutional factors characterizing corporate governance systems around the world affect the relationship between ownership structure and firm value. Our study gives rise to the following findings. First, ownership concentration and insider ownership levels are determined by several institutional features such as investor protection, development of capital markets, activity of the market for corporate control, and effectiveness of boards. Second, the relationship between ownership concentration and firm value is not directly affected by these institutional factors. Third, there is, however, a direct influence of corporate governance characteristics on the relationship between insider ownership and firm value.

Keywords: corporate governance, insider ownership, ownership concentration, institutional features

JEL Classification: G12, G32, G34, G38

Suggested Citation

de Miguel Hidaldo, Alberto and Pindado, Julio and de la Torre, Chabela, How Does Ownership Structure Affect Firm Value? A Comparison Using Different Corporate Governance Systems (December 9, 2003). Available at SSRN: https://ssrn.com/abstract=479322 or http://dx.doi.org/10.2139/ssrn.479322

Alberto De Miguel Hidaldo

University of Salamanca - Administration and Business Economics ( email )

Campus Miguel de Unamuno
Salamanca, ES-37007
Spain
+34 923 294640 (Phone)
+34 923 294715 (Fax)

Julio Pindado (Contact Author)

University of Salamanca - Administration and Business Economics ( email )

Campus Miguel de Unamuno
Salamanca, ES-37007
Spain
+34 923 294640 (Phone)
+34 923 294715 (Fax)

Chabela De la Torre

University of Salamanca - Administration and Business Economics ( email )

Campus Miguel de Unamuno
Salamanca, ES-37007
Spain

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