Management Ownership and Corporate Performance: An Empirical Analysis
NBER Working Paper No. 2055
We investigate the relation between management ownership and corporate performance, as measured by Tobin's Q. In a cross-section of Fortune 500 firms, Tobin's Q first increases and then declines as board of directors holdings rise. For older firms there is weak evidence that Q is lower when a firm is run by a member of the founding family than when it is run by an officer unrelated to the founder.
Published: "Management Ownership and Market Valuation: An Empirical Analysis" Journal of Financial Economics, March, 1988