Association between managerial stock ownership and firm efficiency Online publication date: Mon, 06-Apr-2020
by Ju Ryum Chung; Moon-Kyung Cho; Ho-Young Lee
International Journal of Accounting, Auditing and Performance Evaluation (IJAAPE), Vol. 15, No. 4, 2019
Abstract: This study examines how firm efficiency varies according to managerial ownership. Prior studies on how managerial ownership affects firm value provide inconsistent results. Although firm value is determined by various factors, this study tries to directly link managerial ownership to operating efficiency. It finds evidence consistent with the incentive alignment hypothesis: managerial ownership is positively associated with firm efficiency. It also finds that foreign investors enhance the association between managerial ownership and firm efficiency, whereas an affiliation with large business conglomerates in Korea (chaebols) lowers this association. It contributes to the existing literature by linking managerial ownership to firm efficiency, which we believe is an underlying indicator of the effect of managerial ownership on managers' behaviour in alignment/misalignment with firm value. It also helps interested parties better understand the dynamic roles among management and foreign ownership, and chaebols.
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Accounting, Auditing and Performance Evaluation (IJAAPE):
Login with your Inderscience username and password:
Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.
If you still need assistance, please email subs@inderscience.com
Our Blog 
Follow us on Twitter 
Visit us on Facebook