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An Empirical Analysis of Monitoring Behaviour and Private Benefits of Investors in the Spanish Market

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  • Belén Díaz Díaz
  • Myriam García Olalla

Abstract

The objective of our study is to look for anequilibrium among three factors: the privatebenefits that main shareholders can obtain fromthe firm, the social benefits derived from acertain ownership structure (such assupervision and alignment of interests) and thecosts derived from ownership concentration(such as loss of liquidity and riskdiversification). Our empirical analysis allowsus to conclude that the supervisory role ofownership is more intense in firms where thepotential conflict of interest betweenshareholders and managers is greater, andtherefore the value of the firm can beincreased through a specific composition of itsshareholders. Copyright Kluwer Academic Publishers 2002

Suggested Citation

  • Belén Díaz Díaz & Myriam García Olalla, 2002. "An Empirical Analysis of Monitoring Behaviour and Private Benefits of Investors in the Spanish Market," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 6(1), pages 29-55, March.
    • Handle: RePEc:kap:jmgtgv:v:6:y:2002:i:1:p:29-55
    DOI: 10.1023/A:1015533111380
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    References listed on IDEAS

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