| dc.description.abstract | This paper uses a unique data set from Norway to investigate how firm
performance is affected if the family decides to reduce their ownership stake
below the majority, supermajority, or both voting thresholds. Our findings
indicate that operating revenue is positively affected if the family reduces its
ownership stake below both thresholds, however, higher operating revenue
comes at the expense of lower firm profitability, measured by ROA and net
income, in the year after the ownership change. We identify this relationship by
applying two analysis methods: First, we perform univariate tests, which analyze
the average yearly and industry adjusted firm performance in the year of the
ownership change as well as in the two years before and after one or both voting
thresholds has been crossed. Second, we run fixed-effects regressions to analyze
the relation between firm performance and ownership changes further. In
addition, we perform a logit, probit and hazard model to analyze whether
ownership changes are driven by firm performance. However, the findings of
these models do not support the hypothesis that weak firm performance is the
main driver behind the family’s decision to reduce their ownership stake in the
firm. | en_US |
