Browsing by Author "Urzua, Francisco"

Now showing 1 - 2 of 2
  • Thumbnail Image
    Item
    Board independence, firm performance and ownership concentration: Evidence from Chile
    (ELSEVIER SCIENCE INC, 2008) Lefort, Fernando; Urzua, Francisco
    What determines the composition of companies' boards in the context of high ownership concentration? Are independent directors important as an internal governance mechanism in companies with high ownership concentration? Do markets favor companies whose controlling shareholders use voting rights to elect professional directors?
  • Thumbnail Image
    Item
    Ownership Concentration and Firm Value: New Evidence from Owner Stakes in IPOs
    (2024) Larrain, Borja; Roosenboom, Peter; Sertsios, Giorgo; Urzua, Francisco
    We study the relationship between ownership concentration and firm value using hand-collected data on the stakes of owner-managers before and after initial public offerings (IPOs). We instrument for the reduction in stake using market returns shortly before IPOs. Short-run market returns are plausible instruments because owners engage in market timing by selling more when prior returns are high, but high short-run returns are unlikely to directly affect firm value years after the IPO. As predicted by agency theory, a large reduction in ownership concentration at the IPO is negatively related to valuation. Future asset growth is low when owners have low stakes.