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Journal of Corporate Finance Vol. 17 No. 5 2011

Blockholder dispersion and firm value

Sander J.J. Konijn1; Roman Kräussl2; André Lucas3

1 ING Bank · 2 VU University Amsterdam, The Netherlands · 3 Tinbergen Institute

Abstract

Multiple blockholder structures are a widespread phenomenon in the U.S. The theoretical literature, however, provides conflicting predictions on whether a single large blockholder or a set of dispersed smaller blockholders is better for firm value. Using U.S. data, we find a negative correlation between Tobin's Q and blockholder dispersion. The findings are robust to a wide variety of model specifications and controls and differ from results for other geographic regions such as Europe and Asia.

DOI
10.1016/j.jcorpfin.2011.06.005
Volume
17
Issue
5
Pages
1330-1339
Language
en
Sources
bibtex:phds-export.bib openalex crossref

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