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The effect of ownership on firm value: a meta-analysis

Author

Listed:
  • Maurizio La Rocca

    (Department of Business Administration and Law, University of Calabria, Italy)

  • Fabiola Montalto

    (Department of Business Administration and Law, University of Calabria, Italy)

  • Tiziana La Rocca

    (Department of Economics, University of Messina, Italy)

  • Raffaele Staglianò

    (Montpellier Business School, Montpellier Research in Management, Montpellier, France)

Abstract

This paper focuses on the controversial relationship between ownership and value with the aim of synthesizing the main empirical literature and highlighting the source of heterogeneity among the studies. Through the use of meta-analysis, there emerges a prevalent positive effect of ownership concentration on firm value, and a non-monotonic effect between managerial ownership and firm value. As the main output of the paper, the use of meta-regressions allowed the identification of the variables that moderate the relationship between ownership and value, detecting their potential function in explaining the reasons of controversial outcomes in previous studies. These latter results offer a number of suggestions for further research and, hopefully, ideas for actions to improve corporate governance in the interests of stakeholders.

Suggested Citation

  • Maurizio La Rocca & Fabiola Montalto & Tiziana La Rocca & Raffaele Staglianò, 2017. "The effect of ownership on firm value: a meta-analysis," Economics Bulletin, AccessEcon, vol. 37(4), pages 2324-2353.
    • Handle: RePEc:ebl:ecbull:eb-17-00447
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    References listed on IDEAS

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    1. Giuseppe Ianniello & Alessandra Stefanoni, 2023. "Corporate Profitability and Shareholder Meeting Participation in Italian Listed Companies," International Journal of Business and Management, Canadian Center of Science and Education, vol. 17(3), pages 1-26, February.
    2. Geyer-Klingeberg, Jerome & Hang, Markus & Rathgeber, Andreas, 2020. "Meta-analysis in finance research: Opportunities, challenges, and contemporary applications," International Review of Financial Analysis, Elsevier, vol. 71(C).

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    More about this item

    Keywords

    Meta-regression analysis; corporate governance; ownership concentration; managerial ownership; firm value;
    All these keywords.

    JEL classification:

    • G3 - Financial Economics - - Corporate Finance and Governance

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