The impact of founder-retained ownership on transaction costs in listed firms in emerging offshore economies
The impact of founder-retained ownership on transaction costs in listed firms in emerging offshore economies
Research on the impact of founder ownership on firm performance has yielded mixed results. This study adopts an ownership competence theoretical framework to explore the relationship between founder ownership and the transaction costs associated with trading a firm's listed shares. Using a unique dataset of 149 listed firms from eight Caribbean securities exchanges, we find that retained founder ownership significantly reduces the transaction costs of ownership. This is at odds with prior studies which emphasise how founder leadership and control is initially beneficial but turns negative as the firm gets older. We observe moderating effects as the reduction in transaction costs is further reduced when firms are linked to offshore financial centres (OFCs) and when they implement Anglo-American corporate governance practices. Our findings contribute to the literature on emerging markets by addressing the interplay between founder control, corporate governance, and financial market efficiency in offshore economies.
Hearn, Bruce
45dccea3-9631-4e5e-914c-385896674dc2
11 December 2025
Hearn, Bruce
45dccea3-9631-4e5e-914c-385896674dc2
Hearn, Bruce
(2025)
The impact of founder-retained ownership on transaction costs in listed firms in emerging offshore economies.
European International Business Academy [EIBA] annual meeting 2025, Athens, Greece, Athens, Greece.
11 - 14 Dec 2025.
40 pp
.
Record type:
Conference or Workshop Item
(Paper)
Abstract
Research on the impact of founder ownership on firm performance has yielded mixed results. This study adopts an ownership competence theoretical framework to explore the relationship between founder ownership and the transaction costs associated with trading a firm's listed shares. Using a unique dataset of 149 listed firms from eight Caribbean securities exchanges, we find that retained founder ownership significantly reduces the transaction costs of ownership. This is at odds with prior studies which emphasise how founder leadership and control is initially beneficial but turns negative as the firm gets older. We observe moderating effects as the reduction in transaction costs is further reduced when firms are linked to offshore financial centres (OFCs) and when they implement Anglo-American corporate governance practices. Our findings contribute to the literature on emerging markets by addressing the interplay between founder control, corporate governance, and financial market efficiency in offshore economies.
Text
Caribbean Founder EIBA paper 3
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Published date: 11 December 2025
Venue - Dates:
European International Business Academy [EIBA] annual meeting 2025, Athens, Greece, Athens, Greece, 2025-12-11 - 2025-12-14
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Local EPrints ID: 510385
URI: http://eprints.soton.ac.uk/id/eprint/510385
PURE UUID: 8dec5aac-c791-42e6-9ece-a627256af12d
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Date deposited: 30 Mar 2026 16:35
Last modified: 31 Mar 2026 01:57
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