Please use this identifier to cite or link to this item:
|Title:||The relationship between managerial ownership and firm performance in high R&D firms|
Tobin's Q, R&D
|Citation:||Cui, H., Mak, Y.T. (2002). The relationship between managerial ownership and firm performance in high R&D firms. Journal of Corporate Finance 8 (4) : 313-336. ScholarBank@NUS Repository.|
|Abstract:||Several studies have examined the relationship between managerial ownership and firm performance/value (e.g., [Journal of Financial Economics 20 (1988) 293; Journal of Financial Economics 27 (1990) 595; Journal of Corporate Finance 5 (1999) 79]). Using different samples, these studies provide general support for the argument that increases in managerial ownership create countervailing interest alignment and entrenchment effects, leading to a nonlinear relationship between managerial ownership and firm performance. However, the actual form of this nonlinear relationship differs across the studies. The present paper examines the relationship between managerial ownership and performance for high R&D firms that are listed on the NYSE, AMEX and NASDAQ. We find that Tobin's Q initially declines with managerial ownership, then increases, then declines again and, finally, increases again-a W-shaped relationship. The findings from our study point to the importance of industry effects in the relationship between managerial ownership and firm performance. © 2002 Elsevier Science B.V. All rights reserved.|
|Source Title:||Journal of Corporate Finance|
|Appears in Collections:||Staff Publications|
Show full item record
Files in This Item:
There are no files associated with this item.
checked on Mar 7, 2018
WEB OF SCIENCETM
checked on Dec 31, 2018
checked on Dec 29, 2018
Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.