The International Evidence on Performance and Equity Ownership by Insiders, Blockholders, and Institutions

Download or read book The International Evidence on Performance and Equity Ownership by Insiders, Blockholders, and Institutions written by Bruce Seifert and published by . This book was released on 2005 with total page 34 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines the impact of equity ownership by insiders and the equity holdings of blockholders and institutions on firm performance. We examine these relationships using samples of firms from the U.S., the U.K., Germany, and Japan. Using piecewise linear regression, we find that insiders influence performance positively in all four countries. Our results suggest that insider ownership helps to align the interests of management with those of outside shareholders. We also do not find evidence that firm performance suffers as insiders own quot;largequot; amounts of stock. And finally, we do not observe an overall significant relationship between performance and equity ownership by blockholders or institutions.