The Effects of Corporate Owner Structure on Stock Returns

기업의 소유구조가 주식수익률에 미치는 영향

  • Lee, Hae-Young (College of Business Administration, Kangnam University)
  • Received : 2012.06.07
  • Accepted : 2012.07.12
  • Published : 2012.07.31


This paper examines the effects of corporate ownership structure variables on stock returns. The dependent variables identified in this paper include the equity ratio of large shareholders, institutional investors and foreign investors, and the control variables are firm size, book-to-market ratio, and earning-to-price ratio and leverage. This paper finds that the results of regressions say that institutional investors and foreign investors, firm size, book-to-market ratio and earning-to-price ratio can explain the differences in stock returns using panel data.


Equity ratio of large shareholders;Institutional investors;Foreign investors;Pannel data analysis;Book-to-market ratio;Earning-to-price ratio


Supported by : 강남대학교


  1. Ang, J.S., R.A. Cole, and J.W. Lin, "Agency Costs and Ownership Structure," Journal of Finance, 55, pp.81-106, 2000.
  2. Baek, J.S., J.K. Kang, and K.S. Park, "Corporate Governance and Firm Value: Evidence from the Korean Financial Crisis," Journal of Financial Economics, 71, pp.265-313, 2004.
  3. Banz, R.W. and W. Breen, "Sample-Dependent Results Using Accounting and Market Data : Some Evidence," Journal of Finance 41, pp.779-793, Sep., 1986.
  4. Breusch, T. and A.R. Pagan, "The Lagrange Multiplier Test and its Application to Model Specification in Econometrics," Review of Economic Studies 47, pp. 239-253, 1980.
  5. Chan, Louis K.C., Y. Hamao, and J. Lakonishok, "Fundamentals and Stock Returns in Japan," Journal of Finance 46, pp.1467-1484, Sep., 1991.
  6. Cho, M. "Ownership Structure, Investment, and the Corporate Value: An Empirical Analysis," Journal of Financial Economics, 47, pp.103-121, 1998.
  7. DeAngelo, H. and M. Rice, "Going Private: Minority Freezeouts and Stockholder Wealth," Journal of Law and Economics, 27, pp.367-401, 1984.
  8. Haugen, R.A. and N.L. Baker, "Commonality in the Determinants of Expected Stock Returns," Journal of Financial Eonomics 41, pp.401-439, 1996.
  9. Hausman, J.A., "Specification Tests in Econometrics," Econometrica 46, pp.1251- 1271, 1978.
  10. Holderness, C. and D. Sheehan, "Monitoring an Owner: The Case of Turner Broadcasting," Journal of Financial Economics, 30, pp.325-346, 1991.
  11. Hsiao, C., Analysis of Panel Data, Cambridge: Cambridge University Press, 2003.
  12. Jensen, M. and W. Meckling, "Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure," Journal of Financial Economics, 3, pp.305-360, 1976.
  13. McConnell, J. and H. Servaes, "Additional Evidence on Equity Ownership and Corporate Value," Journal of Financial Economics, 27, pp.595-612, 1990.
  14. Vuolteenaho, T., "What Drives Firm Level Stock Returns?," Journal of Finance 57, pp.233-264, 2002.