Why are firms with more managerial ownership worth less?

• 成果类型: Article
• 署名作者: Fabisik, Kornelia; Fahlenbrach, Ruediger; Stulz, Rene M.; Taillard, Jerome P.
• 署名单位: University System of Ohio; Ohio State University
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2021.02.008
• 发表日期: 2021
• 页码: 699-725
• 关键词: Managerial ownership; Tobin’ s q; Firm value; liquidity

摘要

Using more than 50,0 0 0 firm-years from 1988 to 2015, we show that the empirical relation between a firm's Tobin's q and managerial ownership is systematically negative. When we restrict our sample to larger firms, as in the prior literature, we confirm earlier findings of an increasing and concave relation between q and managerial ownership. We show that cumulative past performance and liquidity can explain these seemingly contradictory results. Better performing firms have more liquid equity, which enables firms and insiders to more easily sell shares after the IPO, and they also have a higher Tobin's q. (c) 2021 Elsevier B.V. All rights reserved.