Abstract
| Original language | English |
|---|---|
| Journal | Strategic Management Journal |
| Volume | 21 |
| Issue number | 6 |
| Pages (from-to) | 689-705 |
| Number of pages | 17 |
| ISSN | 0143-2095 |
| DOIs | |
| Publication status | Published - 2000 |
Keywords
- Ownership structure
- Performance
- Europe
Cite this
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Ownership Structure and Economic Performance in the Largest European Companies. / Thomsen, Steen; Pedersen, Torben.
In: Strategic Management Journal, Vol. 21, No. 6, 2000, p. 689-705.Research output: Contribution to journal › Journal article › Research › peer-review
TY - JOUR
T1 - Ownership Structure and Economic Performance in the Largest European Companies
AU - Thomsen, Steen
AU - Pedersen, Torben
PY - 2000
Y1 - 2000
N2 - The paper examines the impact of ownership structure on company economic performance in 435 of the largest European companies. Controlling for industry, capital structure and nation effects we find a positive effect of ownership concentration on shareholder value (market‐to‐book value of equity) and profitability (asset returns), but the effect levels off for high ownership shares. Furthermore we propose and support the hypothesis that the identity of large owners—family, bank, institutional investor, government, and other companies—has important implications for corporate strategy and performance. For example, compared to other owner identities, financial investor ownership is found to be associated with higher shareholder value and profitability, but lower sales growth. The effect of ownership concentration is also found to depend on owner identity.
AB - The paper examines the impact of ownership structure on company economic performance in 435 of the largest European companies. Controlling for industry, capital structure and nation effects we find a positive effect of ownership concentration on shareholder value (market‐to‐book value of equity) and profitability (asset returns), but the effect levels off for high ownership shares. Furthermore we propose and support the hypothesis that the identity of large owners—family, bank, institutional investor, government, and other companies—has important implications for corporate strategy and performance. For example, compared to other owner identities, financial investor ownership is found to be associated with higher shareholder value and profitability, but lower sales growth. The effect of ownership concentration is also found to depend on owner identity.
KW - Ownership structure
KW - Performance
KW - Europe
KW - Ownership structure
KW - Performance
KW - Europe
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U2 - 10.1002/(SICI)1097-0266(200006)21:6<689::AID-SMJ115>3.0.CO;2-Y
DO - 10.1002/(SICI)1097-0266(200006)21:6<689::AID-SMJ115>3.0.CO;2-Y
M3 - Journal article
VL - 21
SP - 689
EP - 705
JO - Strategic Management Journal
JF - Strategic Management Journal
SN - 0143-2095
IS - 6
ER -