Publication: Management ownership and market valuation
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Date
1988
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Elsevier BV
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Morck, Randall, Andrei Shleifer, and Robert W. Vishny. 1988. “Management Ownership and Market Valuation.” Journal of Financial Economics 20 (January): 293–315. doi:10.1016/0304-405x(88)90048-7. http://dx.doi.org/10.1016/0304-405X(88)90048-7.
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Abstract
We investigate the relation between management ownership and corporate performance, as measured by Tobin's Q. In a cross-section of Fortune 500 firms, Tobin's Q first increases and then declines as board of directors holdings rise. For older firms there is weak evidence that Q is lower when a firm is run by a member of the founding family than when it is run by an officer unrelated to the founder.
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