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Journal of Financial Economics Vol. 16 No. 1 1986

Ownership structure and control

David Mayers1,2; Clifford W. Smith1,2

1 University of California, Los Angeles · 2 University of Rochester

Abstract

We examine an unusual sample of firms within the life insurance industry: 30 firms which switched from a common-stock to a mutual-ownership structure. Our evidence indicates that the rate of growth of premium income from policyholders remains unchanged, stockholders receive a premium for their stock, and management turnover declines; thus, no group of claimholders systematically loses in the sample of firms which choose to go through the mutualization process. We therefore conclude that for this sample of firms, changing from a stock to a mutual-ownership structure is on average efficiency-enhancing.

DOI
10.1016/0304-405x(86)90043-7
Volume
16
Issue
1
Pages
73-98
Language
en
Sources
bibtex:phds-export.bib openalex crossref

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