Agency problem and ownership structure: outside blockholder as a signal
We propose a model in which an entrepreneur, seeking outside fi nancing, sells a large equity share to an outside blockholder in order to signal his low propensity to extract private benefi ts. A conventional theoretical rationale for the presence of an outside block holder is mitigation of the agency problem via some type of monitoring or intervention. Our model provides a novel insight: outside blockholders may be attracted by fi rms with low, rather than high, agency problems. Our result yields a new implication for the interpretation of an often documented positive relationship between outside ownership concentration in a fi rm and its market valuation: such relationship may be driven by “sorting” rather than by a direct effect of blockholder monitoring. In fact, we show that the positive correlation may arise even if the blockholder derives private benefi ts and has no positive impact on the value of small shares. Finally, we argue that our analysis may help explain why the market reacts more favorably to private placements of equity as opposed to public issues.
Priority areas: economics
, , Journal of Economic Behavior and Organization 2017 No. 133 P. 87-107
We propose a model in which an entrepreneur, seeking outside fi nancing, sells a large equity share to an outside blockholder in order to signal his low propensity to extract private benefi ts. A conventional theoretical rationale for the presence of an outside block holder is mitigation of the agency problem via some type of ...
Added: December 13, 2016
, , , Экономическая политика 2016 Т. 11 № 6 С. 36-59
The recent restructuring of the economy has led to the fact that the leaders of information technology sector — Apple, Google, Facebook, Microsoft, Amazon — became the largest companies in the world, replacing the banking and oil and gas sectors. The emergence of a large number of technology start-ups resulted in the increase of the entrepreneurial ownership. Business founders ...
Added: March 15, 2017
Концентрация собственности как механизм корпоративного управления в российских публичных компаниях: влияние на финансовые результаты деятельности
, , , Прикладная эконометрика 2017 № 45 С. 50-74
This study is devoted to the analysis of ownership concentration as the mechanism of corporate governance and its impact on corporate performance. We estimated the concentration through the Herfindahl-Hirshman Index, whereas corporate performance indicators are measured trough ROA and Tobin’s Q. Based on the data of Russian public companies during 2004-2013 years, we found out ...
Added: February 21, 2017
, , Journal of Corporate Finance Research 2017 Vol. 11 No. 4 P. 11-35
In this article, we consider the relation between capital structure, corporate governance, ownership structure and performance of a company depending on its life cycle stages. The central aim of this study is to define the most sustainable and effective types of financial architecture by using the cluster and regression analysis. This study describes the three ...
Added: January 31, 2018
Organizational Forms and Incentives in Public Procurement: Natural Experiment at a Large Public Sector Organization in Russia
, , , International Journal of Public Administration 2018 Vol. 41 No. 14 P. 1157-1168
This article analyses how the intensification of centralized monitoring within public organization may impact incentives for efficiency in those divisions of the organization that have different levels of financial autonomy. The efficiency of divisions’ activities was estimated through their procurement effectiveness. All the divisions were classified as non-commercial units (NCU) funded by the government or ...
Added: August 9, 2017
, , , Финансы: теория и практика 2018 Т. 22 № 5 С. 90-104
The article examines the issue of differences in the dividend policy of public and private companies in Russia. State corporations form more than 40% of revenues of the largest Russian companies, at the same time the role of ownership structure in determining dividend policy is not uniquely determined in the literature. Comparative analysis of Russian ...
Added: October 1, 2018
, , М. : Перо, 2014
The monograph concerned on the organizational problems of monitoring programs of innovative development at the biggest Russian companies. In the book there is an original methodical approach to managerial accounting, analysis and control of the progress and results of innovation at enterprises. Conception underlines features and level of development of corporate management technology and specific ...
Added: February 26, 2015
Организационные формы и стимулы в государственных закупках: естественный эксперимент для одной российской государственной организации
, , , Экономический журнал Высшей школы экономики 2016 Т. 20 № 2 С. 285-310
This paper analysis the impact of centralized monitoring enlargement in a large public organization on incentives for efficient activity of organization’s departments, which have different levels of financial autonomy. We analyze the data of the large public organization during 2008-2013. The efficiency of departments’ activity was measured by competiveness of their procurements and delays in ...
Added: October 14, 2015
Экономические модели мониторинга качества окружающей среды в условиях неполной информации и высоких издержек
, , Вопросы экономики 2014 № 4 С. 99-122
The paper considers monitoring of environmental change as the central element of environmental regulation. Monitoring, as each kind of principal-agent relations, easily gives rise to corruptive behavior. In the paper we analyze economic models of environmental monitoring with high costs, incomplete information and corruption. These models should be the elements of environmental economics and are ...
Added: March 17, 2015
The Relationship Between Corporate Governance and Company Performance in Concentrated Ownership Systems: the Case of Germany
, , Journal of Corporate Finance Research 2009 Vol. 3 No. 4 P. 34-56
This article presents the results of empirical research of the impact of corporate governance system elements (ownership structures and board characteristics) and company performance in the economies with concentrated ownership. Major goals of this study were to develop the empirical methodology allowing for causal relationship between ownership structure elements and corporate performance and to test the methodology using the high-quality data from the developed ...
Added: November 14, 2012
, , , Journal of Family Business Strategy 2017 Vol. 8 No. 2 P. 99-108
We analyze the effect of pyramidal ownership levels on the performance of Chilean firms by considering the impact of business groups. Using an unbalanced panel of 1018 firm-year observations from 88 quoted firms for the period from 2000 to 2014, we find that higher levels of separation between ownership rights and control rights decrease performance in family firms ...
Added: May 30, 2017
Does corporate governance affect the valuation of Spanish IPOs? The role of ownership structure and the board of directors
, , Spanish Journal of Finance and Accounting 2018 Vol. 47 No. 2 P. 214-241
We analyse the influence of the board of directors and ownership structure on the valuation of initial public offering (IPOs) in the Spanish capital market during the period 1998–2013. After controlling for other influences such as the auditor’s reputation, the underwriter’s reputation and the level of information asymmetry, our results lend strong support for the ...
Added: October 30, 2018
, , , Прикладная эконометрика 2018 № 4(52) С. 22-45
This paper presents the testing results for hypotheses which try to explain, how do Russian companies choose such financing sources, as public debt (bonds). Bivariate probit models have been applied on a sample of 1107 companies in the interval from 2015 to 2017. The main aim of this paper is to identify the presence of ...
Added: November 30, 2018
, Вестник АКСОР 2011 № 2 С. 39-46
Nowdays normative legal acts adopting by the government are aimed at improving the efficiency of public expenditures, associated with the stimulation of economic development. A lot of new budgetary tools are entered in our economy. Nevertheles, practical implementation of new mechanisms and tools is enough slow. This situation focuses on the efficiency of public expendirures ...
Added: October 9, 2012
, RAND Journal of Economics 2010 Vol. 41 No. 2 P. 270-300
Added: November 18, 2013
, , Сезонная корректировка как источник ложных сигналов / Высшая школа экономики. Серия WP2 "Количественный анализ в экономике". 2013. № WP2/2013/04.
The paper analyzes aberrations that appear as a side-effect of seasonal adjustment when applied to time series of economic data in the neighborhood of an abrupt change in level, the pattern of dynamics that was typical for economic crises. Under these circumstances the standard algorithms of seasonal adjustment are shown to be able to produce ...
Added: September 30, 2013
, , The Influence of Ownership Structure And Board Independence On The Cost Of Debt In BRIC Countries / Высшая школа экономики. Series FE "Financial Economics". 2019. No. 74/FE/2019.
This paper presents an empirical analysis of the influence of ownership structure and board independence on bond yield spread in BRIC countries, 2007-2016. The main finding of the study is the presence of significant country-specific effects of ownership structure on the cost of debt, and the absence of effects of board independence. According to our ...
Added: November 2, 2020
, , , BRQ Business Research Quarterly 2015 No. 18 P. 259-274
We analyze the effect of two types of corporate diversification (business diversification and ownership diversification) on the market value of the Chilean firms. For a sample of 83 nonfinancial firms listed on the Santiago Stock Market from 2005 to 2013, we find a discount for both business and ownership diversification, which is consistent with that ...
Added: December 10, 2015
, , Do shareholder coalitions modify the dominant owner's control? The impact on dividend policy / Высшая школа экономики. Series FE "Financial Economics". 2015. No. 41.
We examine the effect of shareholder coalitions on the corporate payout policy in Spain, a context characterized by the presence of dominant shareholders. Our results show that shareholder coalitions affect payout policy negatively (both for dividends and shares repurchases). This finding suggests that shareholder coalitions serve as an instrument for the dominant shareholder’s to extract ...
Added: December 9, 2015
This book features selected papers presented at the First International Conference on Agriculture Digitalization and Organic Production (ADOP 2021), held in St. Petersburg, Russia, on June 07–09, 2021. The contributions, written by professionals, researchers and students, cover topics in the field of agriculture, biology, robotics, information technology and economics for solving urgent problems in digitalization ...
Added: September 13, 2021
Institutional framework, corporate ownership structure, and R&D investment: An international analysis
, , R & D Management 2017 Vol. 47 No. 1 P. 141-157
We combine agency theory with the law and finance approach to analyze how the legal protection of investors and the corporate ownership structure affect corporate investment in research and development (R&D). We use information from 956 firms from the five most R&D-intensive industries in 19 developed countries. Our results show that better protection of investors’ ...
Added: September 20, 2016
, , Экономический журнал Высшей школы экономики 2013 Т. 17 № 4 С. 554-584
The analysis of short-term tendency of economic dynamics can be performed on seasonally adjusted data only. This implies that each time series is to be transformed in two: the seasonal component and the remaining part. The result of such decomposition depends on the specific features of the seasonal adjustment algorithm. Most uncertainty is expected within ...
Added: November 15, 2013
М. : Проспект, 2019
В сборнике научных трудов представлены статьи ученых-юристов и молодых ученых, посвященные теоретическому осмыслению регуляторной политики как системы мер по устранению избыточных барьеров в правовом регулировании, а также прикладным аспектам реализации механизмов и процедур регуляторной политики в России. ...
Added: November 25, 2019
Perception of financial constraints: ownership structure, state support, institutional and financial environment
, , et al., Communist and Post-Communist Studies 2019
We analyze the role of ownership structure, segments of debt market and institutional environment for perception of financial constraints by top-management. The unique feature is the panel for 28 countries of the former communist block from 2002 to 2013 on the base of BEEPS survey data. We apply probit and Heckman models and investigate non-linear and ...
Added: December 14, 2018