Table 9

Family firms, minority investor protection and stock market reaction

Dependent variable
Independent(I)(II)(III)
variablesCumulative abnormal return (%)
(Intercept)−0.00798 (0.018)−0.05080 (0.031)−0.04902 (0.035)
Family firm−0.00136 (0.004)−0.00292 (0.004)−0.00291 (0.004)
Dual class−0.00897 (0.010)−0.01053 (0.009)−0.01182 (0.009)
Family firm × dual class0.02172 (*) (0.012)0.02303 (**) (0.012)0.02461 (**) (0.012)
Voting rights restrictions−0.00682 (*) (0.004)−0.00817 (**) (0.003)−0.00827 (**) (0.003)
Opting-out0.00430 (0.004)0.00648 (0.005)0.00668 (0.005)
Board independence−0.00299 (0.009)−0.00548 (0.009)−0.00531 (0.009)
Sales volatility−0.03180 (*) (0.018)−0.03161 (*) (0.018)
ln(market capitalization)0.00304 (*) (0.002)0.00258 (0.002)
Trading volume0.00000 (0.000)
Tobin’s Q0.00347 (0.002)
Fixed effectsIndustryIndustryIndustry
Multiple R214.3%20.0%20.7%
Note(s):

The table presents OLS coefficient estimates for cumulative abnormal return. The sample is based on 350 firm-year observations for events related to the popular initiative “against rip-off salaries.” White standard errors are reported in parentheses, and significance at the 1, 5 and 10% levels is indicated by ***, ** and *, respectively

Source(s): Authors’ own work

or Create an Account

Close Modal
Close Modal