Do market participants perceive blockholders' power and preferences? : locus of control, preference heterogeneity, and firm valuation in the Swiss context

Sikavica, Katarina; Kessler, Esther

doi:10.22495/cocv10i4art3

Publication type:	Article in scientific journal
Type of review:	Peer review (publication)
Title:	Do market participants perceive blockholders' power and preferences? : locus of control, preference heterogeneity, and firm valuation in the Swiss context
Authors:	Sikavica, Katarina Kessler, Esther
DOI:	10.22495/cocv10i4art3
Published in:	Corporate Ownership and Control
Volume(Issue):	10
Issue:	4
Page(s):	31
Pages to:	46
Issue Date:	2013
Publisher / Ed. Institution:	Virtus Interpress
ISSN:	1727-9232 1810-3057
Language:	English
Subjects:	Blockholder; Control; Ownership; Swiss
Abstract:	This study relies on preference heterogeneity and locus of control research to hypothesize about the impact of control types on firm valuation. We investigate whether market participants discriminate between control types when making investment decisions. Our empirical results of Swiss data suggest that control types represent discrete governance contexts with a unique set of conditions each related to a different level of principal-principal agency costs. Specifically, we find that firms with family ownership and professional management are valued more highly relative to other control configurations and that owners can use board and share structures to signal good governance. Our study thus provides support for a psychological and socio-political perspective of principal-principal conflicts of interests and expropriation of minority investors.
URI:	https://digitalcollection.zhaw.ch/handle/11475/9903
Fulltext version:	Published version
License (according to publishing contract):	Licence according to publishing contract
Departement:	School of Management and Law
Appears in collections:	Publikationen School of Management and Law

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Sikavica, K., & Kessler, E. (2013). Do market participants perceive blockholders’ power and preferences? : locus of control, preference heterogeneity, and firm valuation in the Swiss context. Corporate Ownership and Control, 10(4), 31–46. https://doi.org/10.22495/cocv10i4art3

Sikavica, K. and Kessler, E. (2013) ‘Do market participants perceive blockholders” power and preferences? : locus of control, preference heterogeneity, and firm valuation in the Swiss context’, Corporate Ownership and Control, 10(4), pp. 31–46. Available at: https://doi.org/10.22495/cocv10i4art3.

K. Sikavica and E. Kessler, “Do market participants perceive blockholders’ power and preferences? : locus of control, preference heterogeneity, and firm valuation in the Swiss context,” Corporate Ownership and Control, vol. 10, no. 4, pp. 31–46, 2013, doi: 10.22495/cocv10i4art3.

SIKAVICA, Katarina und Esther KESSLER, 2013. Do market participants perceive blockholders‘ power and preferences? : locus of control, preference heterogeneity, and firm valuation in the Swiss context. Corporate Ownership and Control. 2013. Bd. 10, Nr. 4, S. 31–46. DOI 10.22495/cocv10i4art3

Sikavica, Katarina, and Esther Kessler. 2013. “Do Market Participants Perceive Blockholders’ Power and Preferences? : Locus of Control, Preference Heterogeneity, and Firm Valuation in the Swiss Context.” Corporate Ownership and Control 10 (4): 31–46. https://doi.org/10.22495/cocv10i4art3.

Sikavica, Katarina, and Esther Kessler. “Do Market Participants Perceive Blockholders’ Power and Preferences? : Locus of Control, Preference Heterogeneity, and Firm Valuation in the Swiss Context.” Corporate Ownership and Control, vol. 10, no. 4, 2013, pp. 31–46, https://doi.org/10.22495/cocv10i4art3.