(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 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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Subjects: | H Social Sciences > HG Finance |
Depositing User: | Symplectic Admin |
Date Deposited: | 31 Mar 2016 10:03 |
Last Modified: | 31 Mar 2016 10:03 |
DOI: | 10.1016/j.frl.2015.07.002 |
URI: | http://livrepository.liverpool.ac.uk/id/eprint/2022421 |