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Do Multiple Large Shareholders Play A Corporate Governance Role? Evidence From East Asia

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  • Najah Attig
  • Sadok El Ghoul
  • Omrane Guedhami

Abstract

We examine the governance role of multiple large shareholder structures (MLSS) to determine their valuation effects in a sample of 1,252 publicly traded firms from nine East Asian economies. We find that the presence, number, and size of multiple large shareholders are associated with a significant valuation premium. Our results also show that the identity of MLSS influences corporate value and that the valuation effects of MLSS are more pronounced in firms with greater agency costs. Our results imply that MLSS play a valuable monitoring role in curbing the diversion of corporate resources.

Suggested Citation

  • Najah Attig & Sadok El Ghoul & Omrane Guedhami, 2009. "Do Multiple Large Shareholders Play A Corporate Governance Role? Evidence From East Asia," Journal of Financial Research, Southern Finance Association;Southwestern Finance Association, vol. 32(4), pages 395-422, December.
    • Handle: RePEc:bla:jfnres:v:32:y:2009:i:4:p:395-422
    DOI: 10.1111/j.1475-6803.2009.01255.x
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