Managerial Alignment versus Entrenchment Effects on Firm Performance in Australia

This study investigates whether managerial share ownership serve to enjhance or detract from firm performance in listed companies in Australia. The results support both the 'convergence of interest' and 'entrenchment' hypotheses and therefore, the existence of a non-linear relati...

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Main Authors: Singhchawla, Wanachan, Evans, Robert, Evans, John, Rajabhat, S.
Format: Journal Article
Published: Taiwan Institute of Business Administration 2011
Online Access:http://hdl.handle.net/20.500.11937/11448
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author Singhchawla, Wanachan
Evans, Robert
Evans, John
Rajabhat, S.
author_facet Singhchawla, Wanachan
Evans, Robert
Evans, John
Rajabhat, S.
author_sort Singhchawla, Wanachan
building Curtin Institutional Repository
collection Online Access
description This study investigates whether managerial share ownership serve to enjhance or detract from firm performance in listed companies in Australia. The results support both the 'convergence of interest' and 'entrenchment' hypotheses and therefore, the existence of a non-linear relationship between firm performance and managerial ownership. A cubic relationship is found to exist for Australian data, namely convergence to entrenchment to convergence, with maximum and minimum points occurring at approximately 12% and 58% of executive directors' shareholdings, respectively.
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format Journal Article
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institution Curtin University Malaysia
institution_category Local University
last_indexed 2025-11-14T06:55:02Z
publishDate 2011
publisher Taiwan Institute of Business Administration
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spelling curtin-20.500.11937-114482017-01-30T11:24:51Z Managerial Alignment versus Entrenchment Effects on Firm Performance in Australia Singhchawla, Wanachan Evans, Robert Evans, John Rajabhat, S. This study investigates whether managerial share ownership serve to enjhance or detract from firm performance in listed companies in Australia. The results support both the 'convergence of interest' and 'entrenchment' hypotheses and therefore, the existence of a non-linear relationship between firm performance and managerial ownership. A cubic relationship is found to exist for Australian data, namely convergence to entrenchment to convergence, with maximum and minimum points occurring at approximately 12% and 58% of executive directors' shareholdings, respectively. 2011 Journal Article http://hdl.handle.net/20.500.11937/11448 Taiwan Institute of Business Administration fulltext
spellingShingle Singhchawla, Wanachan
Evans, Robert
Evans, John
Rajabhat, S.
Managerial Alignment versus Entrenchment Effects on Firm Performance in Australia
title Managerial Alignment versus Entrenchment Effects on Firm Performance in Australia
title_full Managerial Alignment versus Entrenchment Effects on Firm Performance in Australia
title_fullStr Managerial Alignment versus Entrenchment Effects on Firm Performance in Australia
title_full_unstemmed Managerial Alignment versus Entrenchment Effects on Firm Performance in Australia
title_short Managerial Alignment versus Entrenchment Effects on Firm Performance in Australia
title_sort managerial alignment versus entrenchment effects on firm performance in australia
url http://hdl.handle.net/20.500.11937/11448