Ownership Structure and Firm Value: Evidence from Tehran Stock Exchange

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Sadat Rasoul, Mohammad Hosein | 2020

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Type of Document: M.Sc. Thesis
Language: Farsi
Document No: 53416 (44)
University: Sharif University of Technology
Department: Management and Economics
Advisor(s): Talebian, Masoud; Ebrahimnejad, Ali
Abstract:
There are different kinds of ownership structures. In every economy special kinds of these structures are common. These structures include Pyramidal ownership, cross-ownership, etc. These structures empower shareholders to make a gap between their cash flow right and ownership right in a special firm so they could control more firms with the same capital. These structures have their pros and cons, like the internal capital market and tunneling. Of important factors affecting these structures are Legal protection of minor shareholders, shareholder concentration, and largest shareholder. In this research, we find that, unlike most countries, there is a negative relationship between a firm's value and the share of its largest shareholder. We suggest that state ownership, which is common in listed firms of the Tehran stock exchange, is related. We also study the relation of firm value and the gap between cash flow and ownership right in two large business groups in Iran, the Mostazafan Foundation, and The Social Security Investment Company
Keywords:
Ownership Structure ; Cross Ownership ; Pyramidal Structure ; Firm Value ; Voting Right ; Cash-flow Right ; Business Group ; Tehran Stock Exchange

No TOC