An Analysis of the Relevance of Minority Stockholder Interest Information

Posted: 1 Sep 1997

See all articles by Zane L. Swanson

Zane L. Swanson

University of Central Oklahoma

Carol A. Mielke

Saint Louis University - Richard A. Chaifetz School of Business

Date Written: June 1997

Abstract

This study examines the relevance of minority interest financial statement information by using existing voluntary disclosure data. Minority interests are the result of acquisitions and have investor implications concerning disclosure and diversification. Regression analyses indicate that disaggregating the equity interest data into majority and minority shareholder interest information provides increased explanatory value about stock market returns. Furthermore, the market responds to the interaction between the size of the minority interest and the corresponding financial statement information. The findings provide weak evidence that minority interests are best classified as equity as opposed to a liability or the mezzanine category of neither.

JEL Classification: M41, M44, G12, G34

Suggested Citation

Swanson, Zane L. and Mielke, Carol A., An Analysis of the Relevance of Minority Stockholder Interest Information (June 1997). Available at SSRN: https://ssrn.com/abstract=10619

Zane L. Swanson (Contact Author)

University of Central Oklahoma ( email )

100 North University Drive
Edmond, OK 73034
United States

Carol A. Mielke

Saint Louis University - Richard A. Chaifetz School of Business ( email )

3674 Lindell Blvd
St. Louis, MO 63108-3397
United States

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