Agency theory, stewardship theory, the legalistic perspective and the substitution hypothesis have served as central themes of corporate governance research. Using this theoretical foundation, this study investigates the relationship between the equity ownership structure and performance of managed care firms. Results suggest that CEO stock options as a percentage of outstanding shares is negatively associated with some aspects of firm performance but that blockholder equity ownership appears to have an insignificant impact on firm performance.
Management Research News – Emerald Publishing
Published: Jun 1, 2004
Keywords: Equity ownership; Firm performance; Agency theory; CEO; Blockholder; Managed care