The Cost of Multiple Large Shareholders

作者：Charlie Xiaowu Cai, David Hillier, Jun Wang · 发表于：Financial Management · 年份：2015 · DOI：10.1111/fima.12090 · 被引用次数：101 · 研究领域：Corporate Finance and Governance、Auditing, Earnings Management, Governance、Financial Markets and Investment Strategies

Previous research argues that large noncontrolling shareholders enhance firm value because they deter expropriation by the controlling shareholder. We propose that the conflicting incentives faced by large shareholders may induce a nonlinear relationship between the relative size of large shareholdings and firm value. Consistent with this prediction, we present evidence that there are costs to having a second (and third) largest shareholder, especially when the largest shareholdings are similar in size. Our results are robust to various relative size proxies, firm performance measures, model specifications, and potential endogeneity issues.