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Managerial ownership dynamics and firm value

✍ Scribed by Rüdiger Fahlenbrach; René M. Stulz


Book ID
113711121
Publisher
Elsevier Science
Year
2009
Tongue
English
Weight
410 KB
Volume
92
Category
Article
ISSN
0304-405X

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This paper examines the hypothesis that the amount of CEO ownership has a dominating effect on the value of the firm. Using a diverse sample of firms, firm value as measured by Tobin's q is found to be a nonmonotonic function of CEO ownership. Specifically, Tobin's q rises when the CEO owns between