Why is Ownership Endogenous?
13 Pages Posted: 26 Jan 2004
Date Written: January 8, 2004
A recently published paper by Gugler and Weigand (Applied Economics Letters, 10, 483-486, 2003) addresses the problem of the endogeneity of ownership, but an unresolved question remains. Where does this endogeneity come from? We show that the main source of endogeneity is the simultaneity between ownership and value.
Keywords: Firm value, insider ownership, ownership concentration, endogeneity
JEL Classification: G32, G12
Suggested Citation: Suggested Citation