Were the Good Old Days That Good? Changes in Managerial Stock Ownership Since the Great Depression / Clifford G. Holderness, Randall S. Kroszner, Dennis P. Sheehan.

Format:

Book

Author/Creator:

Holderness, Clifford G.

Contributor:

National Bureau of Economic Research.

Kroszner, Randall S.

Sheehan, Dennis P.

Series:

Working Paper Series (National Bureau of Economic Research) no. w6550.

NBER working paper series no. w6550

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 1998.

Summary:

We document that ownership by officers and directors of publicly-traded firms is on average higher today than earlier in the century. Managerial ownership rises from 13 percent for the universe of exchange-listed corporations in 1935, the earliest year for which such data exist, to 21 percent in 1995. We examine in detail the robustness of the increase and explore hypotheses to explain it. Higher managerial ownership has not substituted for alternative corporate governance mechanisms. Lower volatility and greater hedging opportunities associated with the development of financial markets appear to be important factors explaining the increase in managerial ownership.

Notes:

Print version record

May 1998.