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Aligning ownership and control

Melin, Melker LU ; Gerby, Jakob LU and Bjarte, Alexander LU (2021) FEKH89 20202
Department of Business Administration
Abstract
Abstract

Title Aligning ownership and control

Seminar date 15 January 2021

Course Bachelor's Thesis in Corporate Finance (FEKH89)

Authors Alexander Bjarte, Jakob Gerby, Melker Melin

Thesis Advisor Anamaria Cociorva

Key words Insider Ownership, Financial Performance, ROA, Tobin’s Q,
Asset Allocation, Decision Making

Purpose The aim of this study is to investigate whether equity
ownership amongst the decision making management of a firm
is positive for financial performance.

Methodology In order to achieve the purpose of the study, a quantitative
method with a deductive approach was used.

Theoretical perspective The study relies on previous research on the relationship
... (More)
Abstract

Title Aligning ownership and control

Seminar date 15 January 2021

Course Bachelor's Thesis in Corporate Finance (FEKH89)

Authors Alexander Bjarte, Jakob Gerby, Melker Melin

Thesis Advisor Anamaria Cociorva

Key words Insider Ownership, Financial Performance, ROA, Tobin’s Q,
Asset Allocation, Decision Making

Purpose The aim of this study is to investigate whether equity
ownership amongst the decision making management of a firm
is positive for financial performance.

Methodology In order to achieve the purpose of the study, a quantitative
method with a deductive approach was used.

Theoretical perspective The study relies on previous research on the relationship
between ownership and financial performance. The
Agent-principal relationship lays the foundation for the study.
Agency conflicts and information asymmetry
explaining how this relationship becomes problematic when
ownership and control is divided. Signaling and managerial
incentives explains how principal-agency
conflicts could be mitigated through insider ownership.
Empirical foundation The data consist of ownership -and accounting data for 325
firms listed on Stockholm Stock Exchange, small, -mid -and
Large Cap. Data is collected from the Holdings database
and Bloomberg.

Results The results show a positive coefficient for insider ownership
with statistical significance to financial performance measured
as ROA. For Tobin's Q as dependent variable a positive
coefficient for insider ownership is found but is not statistically
significant. (Less)
Popular Abstract (Swedish)
Abstrakt
Titel Aligning ownership and control

Datum för seminarium 15 Januari 2021

Kurs Kandidatuppsats i Finansiering (FEKH89)

Författare Alexander Bjarte, Jakob Gerby, Melker Melin

Handledare Anamaria Cociorva

Nyckelord Insiderägande, Finansiell prestation, ROA, Tobin’s Q,
Tillgångsallokering, Besultsfattande

Syfte Studien ämnar att undersöka om det finns ett samband mellan
aktieägarskap inom personer med beslutsfattande ställning i företag är positivt för finansiell prestation.

Metod För att uppnå studiens syfte har en kvantitativ metod med
deduktiv ansats använts.

Teoretiska perspektiv Studien grundar sig i tidigare forskning som undersöker
relationen mellan... (More)
Abstrakt
Titel Aligning ownership and control

Datum för seminarium 15 Januari 2021

Kurs Kandidatuppsats i Finansiering (FEKH89)

Författare Alexander Bjarte, Jakob Gerby, Melker Melin

Handledare Anamaria Cociorva

Nyckelord Insiderägande, Finansiell prestation, ROA, Tobin’s Q,
Tillgångsallokering, Besultsfattande

Syfte Studien ämnar att undersöka om det finns ett samband mellan
aktieägarskap inom personer med beslutsfattande ställning i företag är positivt för finansiell prestation.

Metod För att uppnå studiens syfte har en kvantitativ metod med
deduktiv ansats använts.

Teoretiska perspektiv Studien grundar sig i tidigare forskning som undersöker
relationen mellan insiderägande och finansiell prestation.
Agent-principal teorin lägger fundamentan för studien.
Konflikter och informationsasymmetri förklarar problematiken som uppstår när kontroll och ägarskap är skiljt, medan signalering- och ledskapsincitament förklarar hur agentkonflikter kan minskas genom insiderägande.

Empiri Datan består av ägarskap -och bokföringsmässiga variabler för
325 företag listade på Stockholmsbörsens small, mid och
Largecap. Datan är hämtad från Holdings databas och
Bloomberg.

Resultat Resultaten visar på en positiv koefficient för insiderägande med
statistisk signifikans till finansiell prestation mätt som ROA.
För Tobins Q som beroende variabel finner studien en positiv
coefficient men inte med statistisk signifikans. (Less)
Please use this url to cite or link to this publication:
author
Melin, Melker LU ; Gerby, Jakob LU and Bjarte, Alexander LU
supervisor
organization
course
FEKH89 20202
year
type
M2 - Bachelor Degree
subject
keywords
Insider Ownership, Financial Performance, ROA, Tobin´s Q, Asset Allocation, Decision Making
language
English
id
9041744
date added to LUP
2021-06-28 10:59:32
date last changed
2021-06-28 10:59:32
@misc{9041744,
  abstract     = {{Abstract 

Title				Aligning ownership and control

Seminar date			15 January 2021 	

Course			Bachelor's Thesis in Corporate Finance (FEKH89)

Authors			Alexander Bjarte, Jakob Gerby, Melker Melin

Thesis Advisor		Anamaria Cociorva 

Key words			Insider Ownership, Financial Performance, ROA, Tobin’s Q, 
 				Asset Allocation, Decision Making 

Purpose			The aim of this study is to investigate whether equity 
 ownership amongst the decision making management of a firm
 is positive for financial performance. 

Methodology 			In order to achieve the purpose of the study, a quantitative 
 method with a deductive approach was used.

Theoretical perspective 	The study relies on previous research on the relationship 
 				between ownership and financial performance. The 
 				Agent-principal relationship lays the foundation for the study. 
 				Agency conflicts and information asymmetry 
 				explaining how this relationship becomes problematic when 
 				ownership and control is divided. Signaling and managerial 
 				incentives explains how principal-agency 
conflicts could be mitigated through insider ownership. 			
Empirical foundation	The data consist of ownership -and accounting data for 325 
 	 			firms listed on Stockholm Stock Exchange, small, -mid -and 
 				Large Cap. Data is collected from the Holdings database 
 				and Bloomberg.

Results			The results show a positive coefficient for insider ownership 
 				with statistical significance to financial performance measured 
 				as ROA. For Tobin's Q as dependent variable a positive 
 				coefficient for insider ownership is found but is not statistically 
 				significant.}},
  author       = {{Melin, Melker and Gerby, Jakob and Bjarte, Alexander}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{Aligning ownership and control}},
  year         = {{2021}},
}