Director shareownership and corporate performance in South Africa


Ntim, Collins G. (2012) Director shareownership and corporate performance in South Africa. African Journal of Accounting, Auditing and Finance, 1, (4), 359-373. (doi:10.1504/AJAAF.2012.052137).

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Description/Abstract

This paper investigates the relationship between director shareownership and corporate performance in South Africa using a sample of 169 listed firms from 2002 to 2007. Our results suggest a statistically significant and positive association between director shareownership and corporate performance. By contrast, we find no evidence of a non-linear effect of director shareownership on corporate performance. Our findings are robust across a raft of econometric models that control for different types of endogeneity problems and corporate performance proxies. Overall, our results provide support for agency theory, which suggests that director shareownership can reduce agency problems by aligning more closely the interests of shareholders and corporate executives, and thereby improving corporate performance.

Keywords: corporate governance, corporate performance, director shareownership, South Africa, endogeneity

Item Type: Article
Digital Object Identifier (DOI): doi:10.1504/AJAAF.2012.052137
ISSNs: 2046-8083 (print)
2046-8091 (electronic)
Related URLs:
Keywords: corporate governance, corporate performance, director shareownership, South Africa, endogeneity
Subjects: H Social Sciences > HF Commerce > HF5601 Accounting
Divisions : Faculty of Business and Law > Southampton Business School > Centre of Excellence for International Banking, Finance & Accounting
ePrint ID: 343117
Accepted Date and Publication Date:
Status
29 December 2012Published
Date Deposited: 24 Sep 2012 14:24
Last Modified: 01 Oct 2016 06:01
URI: http://eprints.soton.ac.uk/id/eprint/343117

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