Corporate ownership and market valuation in South Africa: Uncovering the effects of shareholdings by different groups of corporate insiders and outsiders

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International Journal of Business Governance and Ethics, vol.8, no.3, pp.242-264, 2013 (Scopus) identifier

  • Nəşrin Növü: Article / Article
  • Cild: 8 Say: 3
  • Nəşr tarixi: 2013
  • Doi nömrəsi: 10.1504/ijbge.2013.057378
  • jurnalın adı: International Journal of Business Governance and Ethics
  • Jurnalın baxıldığı indekslər: Scopus
  • Səhifə sayı: pp.242-264
  • Açar sözlər: Agency theory - convergence-of-interests and entrenchment hypotheses, Corporate governance, Corporate officer ownership groups, Endogeneity, Market valuation, South africa
  • Açıq Arxiv Kolleksiyası: Məqalə
  • Adres: Bəli

Qısa məlumat

This paper examines the connection between shareholdings by different groups of corporate officers (insiders and outsiders) and market valuation in South Africa. Specifically, we examine the effect of shareholdings by employees, chief executive officers (CEOs), chief financial officers (CFOs), other executive directors, and non-executive (outside) directors on market valuation. We find that total ownership by all corporate officers (insiders and outsiders) is positively related to market valuation. However, when we examine the link between ownership by individual groups of corporate officers and market valuation, our results suggest that firms with higher ownership by CEOs and other executive directors have lower market valuation, but we do not find any evidence that ownership by CFOs has any significant effect on market valuation. In contrast, we find that ownership by employees and non-executive outside) directors is positively related to market valuation. Our findings are generally consistent with the predictions of agency theory. Copyright © 2013 Inderscience Enterprises Ltd.