Executive stock ownership and performance - Tracking faint traces

• 成果类型: Article
• 署名作者: Loderer, C; Martin, K
• 署名单位: New Mexico State University
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/S0304-405X(97)00017-2
• 发表日期: 1997
• 页码: 223-255
• 关键词: executive stock ownership; firm performance; CORPORATE ACQUISITIONS; Q ratios

摘要

We examine the relation between managers' financial interests and firm performance. Since the relation could go in either direction, we cast the analysis in a simultaneous equations framework. For firms involved in acquisitions, we find that acquisition performance and Tobin's Q ratios affect the size of managers stockholdings. We find no evidence, however, that larger stockholdings lead to better performance. Perhaps management is effectively disciplined by competition in product and labor markets. Alternatively, it may not be necessary for top executives to own stock to be residual claimants. And finally, higher ownership might multiply the opportunities to appropriate corporate wealth.