TITLE:
Management Share Proprietory and Firm Value: Are There Peculiar Determinants?
AUTHORS:
George William Lokko, Yang Li, Francis Atta Sarpong, Larsey Naphtali Akwetteh
KEYWORDS:
Management Share Ownership, Firm Value, Firm Growth Opportunities, Linear and Non-Linear Relationship
JOURNAL NAME:
Open Journal of Business and Management,
Vol.9 No.6,
October
21,
2021
ABSTRACT: The study examined the specific factors that influence management share
holdings and how this impact on the value of the firm in Ghana. The study
specifically sought to find the relationship existing between managerial
ownership and firm worth, non-linear relationship between managerial ownership
and firm value, how managerial ownership and firm value are affected by size of
firm and firm growth opportunities. Using secondary data from Ghana Stock
Exchange from the period of 2015 to 2019, ten financial institutions (Banks)
and ten non-financial institutions (non-bank) were purposively selected for the
study, considering data availability and accessibility. Inferential statistics
was adopted in analysing the data collected. The study found a weak positive linear relationship between firm worth and
management’s share holdings in the organization. The findings from the
second research question revealed that the
nature of the bond between management share holdings and firm value was the
fact that it was nonlinear, however with no visible description of shape but
rather fluctuating in nature. The study further found that there is a moderately weak positive association
between firm worth and management share of holdings of the organization
in the presence of firm size. The findings from the final research questions
also revealed that connection between firm value and management holding of
share is influenced by firm growth
opportunities. The study recommends the development of a more robust and
parsimonious model in the examination of the
association between management ownership share and firm size to help improve on
the strength and nature of the relationship as was revealed by weak correlation
and coefficient of determination values.