Economics and Systemic Explanations of Ownership Concentration among Europe's Largest Companies

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    Abstrakt

    The paper examines causes and effects of ownership concentration among the largest companies in 12 European countries. As a reference point the paper takes a seminal empirical study on US data and examines to what extent the model is applicable in European countries. The findings indicate that both general economic effects and system effects are significant. Ownership concentration is found to decrease with firm size and to increase with earnings volatility. But in support of the system theories advocated nationality is also found to have a significant effect which is partly attributable to institutional differences between nations such as stock market size and the frequency of large banks. Finally ownership concentration is found to have an insignificant effect on accounting profitability (return on equity).
    OriginalsprogEngelsk
    TidsskriftInternational Journal of the Economics of Business
    Vol/bind6
    Udgave nummer3
    Sider (fra-til)367-381
    Antal sider15
    ISSN1357-1516
    DOI
    StatusUdgivet - 1999

    Emneord

    • European ownership concentration
    • Corporate governance

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