Bai et al. (2004) find a nonlinear relation between a firm’s value and the percentage of its shares held by the largest shareholder. Including this nonlinearity5 may reveal the effect of this percentage’s control on a firm’s value.
Bai et al. (2004) find a nonlinearrelation between a firm’s value and the percentage ofits shares held by the largest shareholder. Includingthis nonlinearity5 may reveal the effect of thispercentage’s control on a firm’s value.