Control Sales In Family Firms
Family Business Review
Business and Leadership
A large stock sale by an insider can be good news for a firm if it increases the potential for meaningful monitoring. I consider insider sales that represent voluntary releases of voting control by managers who continue to manage their firms, and ask if a manager's willingness to relinquish control is affected by the presence of other blockholders. I found that managers of family firms are much more defensive about maintaining their voting control, especially when there are other family members in management.
Livingston, Lynda S.. 2007. "Control Sales in Family Firms." Family Business Review 20(1): 49-64.