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

Georgeta Vintila; Stefan Cristian Gherghina

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

Year 2014, Volume: 4 Issue: 1, 183 - 195, 01.03.2014

Georgeta Vintila Stefan Cristian Gherghina

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

corporate governance, agency theory, insider ownership, firm value, panel data regression models

Year 2014, Volume: 4 Issue: 1, 183 - 195, 01.03.2014

Georgeta Vintila Stefan Cristian Gherghina

Abstract

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Details

Other ID	JA77DB69VP
Journal Section	Research Article
Authors	Georgeta Vintila This is me Stefan Cristian Gherghina This is me
Publication Date	March 1, 2014
Published in Issue	Year 2014 Volume: 4 Issue: 1

Cite

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.
AMA	Vintila G, Gherghina SC. Insider Ownership and the Value of the Bucharest Stock Exchange Listed Companies: Convergence-of-Interest or Entrenchment Effect?. IJEFI. March 2014;4(1):183-195.
Chicago	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 4, no. 1 (March 2014): 183-95.
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	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, 2014.
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 2014), 183-195.
JAMA	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, 2014, pp. 183-95.
Vancouver	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):183-95.