Essays in ownership structure, firm value and insider trading.
Item
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Title
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Essays in ownership structure, firm value and insider trading.
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Identifier
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AAI9618058
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identifier
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9618058
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Creator
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Dev, Ashis Kumar.
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Contributor
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Adviser: Kishore Tandon
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Date
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1996
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Language
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English
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Publisher
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City University of New York.
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Subject
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Economics, Finance | Economics, Theory
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Abstract
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The dissertation consists of four related essays. In all the four essays the market for corporate control and the level of insider ownership play pivotal roles. First, we obtain a theoretical relationship between insider ownership and the value of the firm in a situation in which the insiders have infinitely high value of control and see how this relationship changes as parameters change. Second, we develop a more general model to obtain the relationship between insider ownership and firm value. The predictions of the theoretical model are tested on a data set called Stern-Stewart Performance 1000, after incorporating insider ownership data from Value Line. Third, the theoretical relationship between institutional ownership and firm value for different insider ownership levels is derived under different behavioral assumptions on the part of the institutional owners. The theoretical predictions are tested on the same data set after incorporating institutional ownership data. Fourth, optimal trading of shares by insiders when they receive private information that the stock is overvalued (or undervalued) is analyzed in a theoretical model. An asymmetry between purchases and sales by insiders of a firm is derived theoretically, leading to several empirical hypotheses.
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Type
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dissertation
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Source
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PQT Legacy CUNY.xlsx
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degree
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Ph.D.
