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Managerial ownership and performance

Florackis, Chrisostomos; Kostakis, Alexandros; Ozkan, Aydin


Chrisostomos Florackis

Alexandros Kostakis

Aydin Ozkan


This study revisits the classical debate about the nature of the relationship between managerial ownership and corporate performance by using a semi-parametric estimation approach. The semi-parametric approach helps sidestep concerns associated with the potential misspecification of parametric models (e.g., the arbitrary choice of a fixed number and/or location of turning points) and enables the consideration of a wider range of non-linear behaviors. The empirical results support the existence of the initial alignment effect of managerial ownership at levels lower than 15%, while they do not lead to a strong inference on the relationship between managerial ownership and corporate performance for intermediate and high levels of managerial ownership. The results cast doubt on the findings of recent studies on the subject, which critically rely on fully parametric methods, and instead suggest the use of semi-parametric methods in estimating the shape of the ownership-performance curve. © 2008 Elsevier Inc. All rights reserved.


Florackis, C., Kostakis, A., & Ozkan, A. (2009). Managerial ownership and performance. Journal of business research, 62(12), 1350-1357.

Journal Article Type Article
Acceptance Date Dec 1, 2008
Online Publication Date Jan 24, 2009
Publication Date 2009-12
Deposit Date Nov 13, 2014
Journal Journal Of Business Research
Print ISSN 0148-2963
Publisher Elsevier
Peer Reviewed Peer Reviewed
Volume 62
Issue 12
Pages 1350-1357
Keywords Corporate performance; Managerial ownership; Semi-parametric approach
Public URL
Publisher URL