The Effects of 'Blockholders' on the Value of Companies Listed in the Tehran Stock Exchange

摘要

The effects of number of blockholders on the price-to-book-value ratio of stocks of listed companies with possible conflict of interest between shareholders and management have been under the scrutiny of researchers during the recent decades. The results obtained in the present research carried out on a sample of 93 companies listed in the Tehran stock exchange market seem to confirm the indications of the previous studies. An increase in the number of block-holders (up to three in our study) seems to help improve the price-to-book-value ratio of the stock. We can infer that a higher number of blockholders in the combined ownership allows better allotment monitoring, a lower internal conflict of interest, and, therefore, a higher value of company stocks.