Changes in Ownership Structure and the Value of the Firm: The Case for Mutual-to-Stock Converting Thrift Institutions

Posted: 3 Aug 1999

See all articles by Joseph Aharony

Joseph Aharony

Tel Aviv University - Faculty of Management; Singapore Management University - School of Accountancy

Haim Falk

The Technion, Israel Institute of Technology

Chan-Jane Lin

National Taiwan University - College of Management

Date Written: September 1994

Abstract

This study examines some economic and organizational changes which result from the conversion of Mutual Thrift Institutions to publicly traded stock charter corporations. We focus on the relation between the initial value of the converted firm and subscription decisions by management and by regular depositors, and the employment of a prestigious underwriter or auditor. Whereas the proportion of managerial subscriptions displays a convex relationship with the firm's initial value, the relation between the regular depositor subscription and the converted firm's value is linear and positive. The status of the underwriter or auditor is unrelated to the value of the converted firm. These findings are attributed to the particular regulatory setting that governs the MTI conversion process, to constraints on ownership holdings and to the oversight function of the regulator.

JEL Classification: G21, G28

Suggested Citation

Aharony, Joseph and Falk, Haim and Lin, Chan-Jane, Changes in Ownership Structure and the Value of the Firm: The Case for Mutual-to-Stock Converting Thrift Institutions (September 1994). Available at SSRN: https://ssrn.com/abstract=5764

Joseph Aharony

Tel Aviv University - Faculty of Management ( email )

69978 Tel Aviv
Israel

Singapore Management University - School of Accountancy ( email )

60 Stamford Road
Singapore 178900
Singapore

Haim Falk (Contact Author)

The Technion, Israel Institute of Technology ( email )

Faculty of Industrial Engineering & Management
Haifa 32000
ISRAEL
+972 4 829 4419 (Phone)

Chan-Jane Lin

National Taiwan University - College of Management ( email )

Department of Accounting
1 Roosevelt Rd. Sec. 4
Taipei 106
Taiwan
886-2-3366-1115 (Phone)
886-2-2363-3640 (Fax)

Here is the Coronavirus
related research on SSRN

Paper statistics

Abstract Views
819
PlumX Metrics