Chauhan, Yogesh, Wadhwa, Kavita, Syamala, Sudhakar Reddy and Goyal, Abhinav ORCID: 0000-0002-9859-2117
(2015)
Block-ownership structure, bank nominee director and crash-risk.
FINANCE RESEARCH LETTERS, 14.
pp. 20-28.
Text
Chauhan, FRL, 2015, Block-ownership structure, bank nominee director and crash-risk.pdf - Unspecified Access to this file is embargoed until Unspecified. Download (271kB) |
Abstract
We study the effect of outside block-ownership on the future firm-specific crash-risk of Indian firms. Major and dedicated block-owners play a significant role in aggravating the firm's susceptibility towards crash-risk. Within a novel regulatory setup in India, where borrowing firms are entitled to a bank nominated board-member, we find an ancillary influence of bank nominee's presence in dissipating block-owners influence on firm-level crash-risk. These results support the monitoring hypothesis in alleviating future firm-level crash-risk. Our results are robust to alternate model specifications, different crash-risk and block-ownership measures, clustering, and an array of control variables.
Item Type: | Article |
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Additional Information: | Source info: Finance Research Letters, Vol. 14, pp. 20-28, 2015 |
Uncontrolled Keywords: | Block-ownership, Crash-risk, Bank nominee, Agency problem |
Subjects: | ?? HG ?? |
Depositing User: | Symplectic Admin |
Date Deposited: | 31 Mar 2016 10:09 |
Last Modified: | 15 Dec 2022 11:29 |
DOI: | 10.1016/j.frl.2015.07.002 |
Related URLs: | |
URI: | https://livrepository.liverpool.ac.uk/id/eprint/2022471 |