The structure of equity ownership: a survey of the evidence
Abstract
Purpose
The purpose of this paper is to review recent research on the structure of equity ownership and its impact on firm value. In doing so, the paper outlines the main issues, surveys the more recent work, and highlights the most promising developments on this topic.
Design/methodology/approach
The paper is a survey – as such there is no relevant research design.
Findings
The paper commences from multiple surveys done a decade ago that find that the evidence on this topic is inconclusive. Since then, researchers have developed several promising lines of inquiry. These approaches – specifically the new focus on the identity of the blockholders, multiple blockholder interactions, as well as the use of structural modeling, and the use of changes in insider ownership – hold some promise of being able to provide more definitive answers.
Research limitations/implications
The paper suggests that current researchers focus on newer approaches to analyzing the structure of equity ownership. Specifically, for research on blockholder ownership, the identity of blockholders as well as the interaction between blockholders are promising approaches to this topic. For research on insider ownership, structural models that have become recently popular as well as an emphasis on changes rather than levels of insider ownership are promising avenues of inquiry.
Originality/value
The paper summarizes the state of research on the structure of equity ownership and in doing so provides a quick introduction to a researcher new to this topic. In addition, the paper highlights the most promising areas of inquiry on this topic.
Keywords
Acknowledgements
JEL Classifications — G32, G34
The author would like to thank the Editor (Robert M. Hull) and the anonymous referees for their many helpful comments. The author remains responsible for any remaining errors.
Citation
Basu, N. (2014), "The structure of equity ownership: a survey of the evidence", Managerial Finance, Vol. 40 No. 12, pp. 1175-1189. https://doi.org/10.1108/MF-10-2013-0294
Publisher
:Emerald Group Publishing Limited
Copyright © 2014, Emerald Group Publishing Limited