The transaction cost of founder control within developing economies
The transaction cost of founder control within developing economies
The impact of ownership-based control by entrepreneurial founders has been inconclusive in the literature. By adopting an ownership competence theoretical approach, we link competencies exercised by founder owners with the transaction costs of trading of shares . Based on a unique dataset of 146 listed firms from eight Caribbean securities exchanges, we find that retained founder ownership has a statistically and economically significant impact in reducing transaction costs of ownership. These transaction costs become still lower when the firm has a related party/corporate affiliate located within an offshore financial centre (OFC) and when the firm has adopted Anglo-American shareholder value promoting corporate governance.
Hearn, Bruce
45dccea3-9631-4e5e-914c-385896674dc2
9 November 2024
Hearn, Bruce
45dccea3-9631-4e5e-914c-385896674dc2
Hearn, Bruce
(2024)
The transaction cost of founder control within developing economies.
International Corporate Governance Society annual meeting 2024: International Corporate Governance Society annual meeting 2024, Arizona State University, Pheonix, Arizona, USA, Pheonix, United States.
09 - 10 Nov 2024.
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Abstract
The impact of ownership-based control by entrepreneurial founders has been inconclusive in the literature. By adopting an ownership competence theoretical approach, we link competencies exercised by founder owners with the transaction costs of trading of shares . Based on a unique dataset of 146 listed firms from eight Caribbean securities exchanges, we find that retained founder ownership has a statistically and economically significant impact in reducing transaction costs of ownership. These transaction costs become still lower when the firm has a related party/corporate affiliate located within an offshore financial centre (OFC) and when the firm has adopted Anglo-American shareholder value promoting corporate governance.
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Published date: 9 November 2024
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International Corporate Governance Society annual meeting 2024: International Corporate Governance Society annual meeting 2024, Arizona State University, Pheonix, Arizona, USA, Pheonix, United States, 2024-11-09 - 2024-11-10
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Local EPrints ID: 509344
URI: http://eprints.soton.ac.uk/id/eprint/509344
PURE UUID: 463ff0fb-86e7-485b-b9a9-9627933968b7
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Date deposited: 19 Feb 2026 17:40
Last modified: 20 Feb 2026 02:56
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