Managerial ownership and firm performance in Thailand: An empirical analysis
This study investigates whether managerial share ownership serves to enhance or detract from firm performance in listed companies in Thailand. The convergence-of-interest hypothesis asserts that firm value increases as management ownership rises. On the other hand, when managers own a substantial fr...
| Main Authors: | , , |
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| Format: | Journal Article |
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Virtus Interpress
2010
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| Online Access: | http://hdl.handle.net/20.500.11937/28949 |
| _version_ | 1848752672713211904 |
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| author | Singhchawla, Wanachan Evans, Robert Evans, John |
| author_facet | Singhchawla, Wanachan Evans, Robert Evans, John |
| author_sort | Singhchawla, Wanachan |
| building | Curtin Institutional Repository |
| collection | Online Access |
| description | This study investigates whether managerial share ownership serves to enhance or detract from firm performance in listed companies in Thailand. The convergence-of-interest hypothesis asserts that firm value increases as management ownership rises. On the other hand, when managers own a substantial fraction of the firm shares, then voting power or other influence may satisfy other non-value-maximising objectives without endangering other positions. This gives rise to the entrenchment hypothesis, which suggests the excessive insider ownership has negative impact on corporate performance. The results of this study support both the alignment and entrenchment efforts and therefore the existence of a non-linear relationship between firm performance and managerial ownership. Firm size and industry are also shown to impact significantly on firm performance in Thailand. |
| first_indexed | 2025-11-14T08:12:21Z |
| format | Journal Article |
| id | curtin-20.500.11937-28949 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-14T08:12:21Z |
| publishDate | 2010 |
| publisher | Virtus Interpress |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-289492017-01-30T13:08:49Z Managerial ownership and firm performance in Thailand: An empirical analysis Singhchawla, Wanachan Evans, Robert Evans, John ownership performance Insider agency convergence entrenchment This study investigates whether managerial share ownership serves to enhance or detract from firm performance in listed companies in Thailand. The convergence-of-interest hypothesis asserts that firm value increases as management ownership rises. On the other hand, when managers own a substantial fraction of the firm shares, then voting power or other influence may satisfy other non-value-maximising objectives without endangering other positions. This gives rise to the entrenchment hypothesis, which suggests the excessive insider ownership has negative impact on corporate performance. The results of this study support both the alignment and entrenchment efforts and therefore the existence of a non-linear relationship between firm performance and managerial ownership. Firm size and industry are also shown to impact significantly on firm performance in Thailand. 2010 Journal Article http://hdl.handle.net/20.500.11937/28949 Virtus Interpress fulltext |
| spellingShingle | ownership performance Insider agency convergence entrenchment Singhchawla, Wanachan Evans, Robert Evans, John Managerial ownership and firm performance in Thailand: An empirical analysis |
| title | Managerial ownership and firm performance in Thailand: An empirical analysis |
| title_full | Managerial ownership and firm performance in Thailand: An empirical analysis |
| title_fullStr | Managerial ownership and firm performance in Thailand: An empirical analysis |
| title_full_unstemmed | Managerial ownership and firm performance in Thailand: An empirical analysis |
| title_short | Managerial ownership and firm performance in Thailand: An empirical analysis |
| title_sort | managerial ownership and firm performance in thailand: an empirical analysis |
| topic | ownership performance Insider agency convergence entrenchment |
| url | http://hdl.handle.net/20.500.11937/28949 |