Professor Omneya Abdelsalam o.h.abdelsalam@durham.ac.uk
Professor
Professor Omneya Abdelsalam o.h.abdelsalam@durham.ac.uk
Professor
Dr Antonios Chantziaras antonios.chantziaras@durham.ac.uk
Research Assistant / Associate
Jonathan A. Batten
Ahmet Faruk Aysan
This study examines the impact of foreign controlling shareholder trust on firm market risk using the two measures of total and idiosyncratic risk. An extensive global sample of 12,496 firm-year observations from 43 countries is employed. The results show that firms controlled by foreign trusting shareholders display lower levels of risk in both market measures. Trust appears more important for firms based in countries with a less favourable institutional environment, whereby it varies with the investment horizon of foreign controlling shareholders. The results are robust after controlling for cultural measures, endogeneity, selection bias and alternative model specifications
Abdelsalam, O., Chantziaras, A., Batten, J. A., & Aysan, A. F. (2021). Major Shareholders’ Trust and Market Risk: Substituting Weak Institutions with Trust. Journal of Corporate Finance, 66, Article 101784. https://doi.org/10.1016/j.jcorpfin.2020.101784
Journal Article Type | Article |
---|---|
Acceptance Date | Nov 11, 2020 |
Online Publication Date | Nov 13, 2020 |
Publication Date | 2021-02 |
Deposit Date | Nov 11, 2020 |
Publicly Available Date | May 13, 2022 |
Journal | Journal of Corporate Finance |
Print ISSN | 0929-1199 |
Publisher | Elsevier |
Peer Reviewed | Peer Reviewed |
Volume | 66 |
Article Number | 101784 |
DOI | https://doi.org/10.1016/j.jcorpfin.2020.101784 |
Public URL | https://durham-repository.worktribe.com/output/1285964 |
Accepted Journal Article
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Publisher Licence URL
http://creativecommons.org/licenses/by-nc-nd/4.0/
Copyright Statement
© 2020 This manuscript version is made available under the CC-BY-NC-ND 4.0 license http://creativecommons.org/licenses/by-nc-nd/4.0/
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