Abstract
This study examined the relationship between institutional ownership and firm performance in the casino industry from 1999-2003. Given the evidence of the endogeneity of institutional ownership in the casino industry, institutional ownership was found to be a significant and positive determinant of casino firm performance as measured by a proxy for Tobin's Q in a simultaneous equations system. This study reveals that investing institutionally in casino firms may help casino industry investors mitigate the agency problem caused by the separation of management from ownership. In addition, financial institutions tend to invest in larger casino firms with lower financial leverage.
| Original language | English |
|---|---|
| Pages (from-to) | 517-530 |
| Number of pages | 14 |
| Journal | International Journal of Hospitality Management |
| Volume | 26 |
| Issue number | 3 |
| DOIs | |
| Publication status | Published - 1 Sept 2007 |
Keywords
- Agency problem
- Casino
- Firm performance
- Institutional ownership
- Ownership endogeneity
- Tobin's Q
ASJC Scopus subject areas
- Tourism, Leisure and Hospitality Management
- Strategy and Management