Multiple Large Shareholders and Firm Value

Posted: 14 Nov 2004

See all articles by Benjamin Maury

Benjamin Maury

Hanken School of Economics

Anete Pajuste

Stockholm School of Economics, Riga; European Gorporate Governance Institute (ECGI)

Multiple version iconThere are 2 versions of this paper


This paper investigates the effects of having multiple large shareholders on the valuation of firms. Using data on Finnish listed firms, we show, consistent with our model, that a more equal distribution of votes among large blockholders has a positive effect on firm value. This result is particularly strong in family-controlled firms suggesting that families (which typically have managerial or board representation) are more prone to private benefit extraction if they are not monitored by another strong blockholder. We also show that the relation between multiple blockholders and firm value is significantly affected by the identity of these blockholders.

Keywords: Corporate governance, Ownership structure, Multiple blockholders, Firm value

JEL Classification: G3, G32

Suggested Citation

Maury, Benjamin and Pajuste, Anete, Multiple Large Shareholders and Firm Value. Journal of Banking and Finance, Vol. 29, pp. 1813-1834, 2005, Available at SSRN:

Benjamin Maury

Hanken School of Economics ( email )

P.O. Box 479
FI-00101 Helsinki, 00101

Anete Pajuste (Contact Author)

Stockholm School of Economics, Riga ( email )

Strelnieku iela 4a
Riga, LV 1010

European Gorporate Governance Institute (ECGI) ( email )

c/o the Royal Academies of Belgium
Rue Ducale 1 Hertogsstraat
1000 Brussels

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Abstract Views
PlumX Metrics