| Reference : CEO Ownership, Stock Market Performance, and Managerial Discretion |
| Scientific journals : Article | |||
| Business & economic sciences : Finance | |||
| http://hdl.handle.net/10993/18524 | |||
| CEO Ownership, Stock Market Performance, and Managerial Discretion | |
| English | |
Von Lilienfeld-Toal, Ulf  [University of Luxembourg > Faculty of Law, Economics and Finance (FDEF) > Luxembourg School of Finance (LSF) >] | |
| Ruenzi, Stefan [] | |
| Jun-2014 | |
| Journal of Finance | |
| Blackwell Publishing | |
| Yes (verified by ORBilu) | |
| International | |
| 0022-1082 | |
| [en] We examine the relationship between CEO ownership and stock market performance.
A strategy based on public information about managerial ownership delivers annual abnormal returns of 4% to 10%. The effect is strongest among firms with weak exter- nal governance, weak product market competition, and large managerial discretion, suggesting that CEO ownership can reverse the negative impact of weak governance. Furthermore, owner-CEOs are value increasing: they reduce empire building and run their firms more efficiently. Overall, our findings indicate that the market does not correctly price the incentive effects of managerial ownership, suggesting interesting feedback effects between corporate finance and asset pricing. | |
| http://hdl.handle.net/10993/18524 |
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