Insider Ownership and the Value of the Bucharest Stock Exchange Listed Companies: Convergence-of-Interest or Entrenchment Effect?

Volume: 4 Number: 1 March 1, 2014
  • Georgeta Vintila
  • Stefan Cristian Gherghina
EN

Insider Ownership and the Value of the Bucharest Stock Exchange Listed Companies: Convergence-of-Interest or Entrenchment Effect?

Abstract

The aim of this paper is to provide empirical evidence regarding the effect of insider ownership on firm value which stems from the lack of such study for the case of Romania. By using a sample of companies listed on the Bucharest Stock Exchange, over the period 2007-2011, our results showed a negative effect of insider shareholdings on firm value. Likewise, the negative effect on firm value was confirmed for insider ownership one-year lagged. Thereby, unconcerned to the level of shareholdings, we ascertained the entrenchment effect, opposite to the goal of shareholders wealth maximization.

Keywords

Details

Primary Language

English

Subjects

-

Journal Section

-

Authors

Georgeta Vintila This is me

Stefan Cristian Gherghina This is me

Publication Date

March 1, 2014

Submission Date

March 1, 2014

Acceptance Date

-

Published in Issue

Year 2014 Volume: 4 Number: 1

APA
Vintila, G., & Gherghina, S. C. (2014). Insider Ownership and the Value of the Bucharest Stock Exchange Listed Companies: Convergence-of-Interest or Entrenchment Effect? International Journal of Economics and Financial Issues, 4(1), 183-195. https://izlik.org/JA63UK34XY
AMA
1.Vintila G, Gherghina SC. Insider Ownership and the Value of the Bucharest Stock Exchange Listed Companies: Convergence-of-Interest or Entrenchment Effect? IJEFI. 2014;4(1):183-195. https://izlik.org/JA63UK34XY
Chicago
Vintila, Georgeta, and Stefan Cristian Gherghina. 2014. “Insider Ownership and the Value of the Bucharest Stock Exchange Listed Companies: Convergence-of-Interest or Entrenchment Effect?”. International Journal of Economics and Financial Issues 4 (1): 183-95. https://izlik.org/JA63UK34XY.
EndNote
Vintila G, Gherghina SC (March 1, 2014) Insider Ownership and the Value of the Bucharest Stock Exchange Listed Companies: Convergence-of-Interest or Entrenchment Effect? International Journal of Economics and Financial Issues 4 1 183–195.
IEEE
[1]G. Vintila and S. C. Gherghina, “Insider Ownership and the Value of the Bucharest Stock Exchange Listed Companies: Convergence-of-Interest or Entrenchment Effect?”, IJEFI, vol. 4, no. 1, pp. 183–195, Mar. 2014, [Online]. Available: https://izlik.org/JA63UK34XY
ISNAD
Vintila, Georgeta - Gherghina, Stefan Cristian. “Insider Ownership and the Value of the Bucharest Stock Exchange Listed Companies: Convergence-of-Interest or Entrenchment Effect?”. International Journal of Economics and Financial Issues 4/1 (March 1, 2014): 183-195. https://izlik.org/JA63UK34XY.
JAMA
1.Vintila G, Gherghina SC. Insider Ownership and the Value of the Bucharest Stock Exchange Listed Companies: Convergence-of-Interest or Entrenchment Effect? IJEFI. 2014;4:183–195.
MLA
Vintila, Georgeta, and Stefan Cristian Gherghina. “Insider Ownership and the Value of the Bucharest Stock Exchange Listed Companies: Convergence-of-Interest or Entrenchment Effect?”. International Journal of Economics and Financial Issues, vol. 4, no. 1, Mar. 2014, pp. 183-95, https://izlik.org/JA63UK34XY.
Vancouver
1.Georgeta Vintila, Stefan Cristian Gherghina. Insider Ownership and the Value of the Bucharest Stock Exchange Listed Companies: Convergence-of-Interest or Entrenchment Effect? IJEFI [Internet]. 2014 Mar. 1;4(1):183-95. Available from: https://izlik.org/JA63UK34XY