Does Ownership Structure Influence Firm Value? An Empirical Research towards the Bucharest Stock Exchange Listed Companies

Authors

  • Georgeta Vintila The Bucharest University of Economic Studies
  • Stefan Cristian Gherghina The Bucharest University of Economic Studies

Abstract

The aim of this study is to research the influence of ownership structure on firm value in order to provide, from our knowledge, the first results for the case of the Bucharest Stock Exchange listed companies. Therefore, we have considered the shareholdings of the following types of shareholders: insiders, companies from financial intermediation sector, State, and employees’ organizations, over the period 2007-2011. Thus, after the econometric estimations using panel data regression models, we have concluded a negative influence of insider shareholdings and employees’ organizations ownership on firm value. However, the results showed a lack of association between State shareholdings and firm value. There resulted a nonlinear relationship between the shareholdings of the companies from financial intermediation sector and firm value. Furthermore, the impact of ownership structure, one year lagged, on contemporaneous firm value was the same, although the magnitude of the influence was higher.

Keywords: corporate governance; ownership structure; firm value; Romania; panel data models

JEL Classifications: G32; G34

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Author Biographies

Georgeta Vintila, The Bucharest University of Economic Studies

Department of Finance

Stefan Cristian Gherghina, The Bucharest University of Economic Studies

Department of Finance

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Published

2015-04-16

How to Cite

Vintila, G., & Gherghina, S. C. (2015). Does Ownership Structure Influence Firm Value? An Empirical Research towards the Bucharest Stock Exchange Listed Companies. International Journal of Economics and Financial Issues, 5(2), 501–514. Retrieved from https://econjournals.com/index.php/ijefi/article/view/1017

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