The finance literature identifies two agency problems between managers and outside shareholders. First, there is a divergence-of-interests problem as management ownership falls. Second, there is an offsetting entrenchment problem when management ownership increases within intermediate regions of ownership. Agency problems are mitigated through contracting, but contracts are often based on accou...

As electricity networks expand, television is second only to lighting in terms of priority uses. A recent survey of households in a rural area of Indonesia showed how rapidly the technology spread. Within two years of electrification, television ownership was 30 percent. Within seven years of electrification, household ownership rates reached 60 percent –this in an area where average incomes we...

This study examines the relation between ownership concentration and performance of initial public offerings (IPOs) in Thailand during 1989-1993. Ownership concentration plays a crucial role in emerging capital markets such as Thailand and can significantly affect IPO performance. Several testable hypotheses are constructed from the IPO literature to examine short-term and long-term IPO perform...

Whether a firm is able to attract foreign capital and whether it may participate at the export market depends on whether the fixed costs associated with doing so are at least covered by the incremental operating profits. This paper provides evidence that success for some firms in attracting foreign investors and in exporting appears to reduce the associated fixed costs with exporting or foreign...

Despite the extraordinarily high ownership concentration widely observed in emerging market firms as a result of institutional voids, there is little research on how this high ownership concentration affects the exporting behavior of emerging market firms. From principal–agent and institutional perspectives, we hypothesize that high ownership concentration has a negative relationship with expor...

Abstract This study analyzes the effect of ownership concentration and identity on probability seasoned equity offerings (SEOs) in German stock market. In Germany, issues require shareholder approval by a supermajority vote 75% at meetings. contributes to literature testing non‐monotonic SEO probability. While low levels can be expected increase probabilities, for example, through signaling eff...

Total institutional ownership, institutional ownership by type of institution (e.g. banks, insurance companies, mutual funds), and a new measure of ownership concentration (similar to the Herfindahl Index) are used to explain contemporaneous bid-ask spreads for 72 quarters (1983-2000) of NASDAQtraded stocks. When controlling for a number of commonly-used variables, relative bid-ask spreads are ...