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.
Highlights
IntroductionA few examinations speculate a connection between the board’s possession and firm qualities, especially when assessing firms’ value
The presentation is systematically based on the objectives of the study which include: to investigate the relationship between managerial ownership and firm value; to examine whether the relationship between managerial ownership and firm value is nonlinear; to examine if the relationship between managerial ownership and firm value is influenced by the size of the firm, and to investigate if the relationship between managerial ownership and firm value is dependent on firm growth opportunities
All four (4) variables included in the study, namely firm value (FV), management ownership share (MANSHARE), firm growth opportunities (FGO), and firm size, were relevant because they aided in measuring what the study intended to measure in terms of the assessment of emerging market capital markets via descriptive statistics such as mean, median, and mode
Summary
A few examinations speculate a connection between the board’s possession and firm qualities, especially when assessing firms’ value. Offer ownership alludes to offers in an organization. The value of the firm can be assessed in a variety of ways, with one of the most common being the use of budgetary proportions. They are valuable indicators of a business’s exhibition and financial situation. Regardless of this, it provides a connection that reveals information about an organization’s operations, for example, the ratio of an organization’s current assets to its current liabilities or the ratio of its borrowers to its turnover
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