𝔖 Bobbio Scriptorium
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Ownership structure and economic performance in the largest european companies

✍ Scribed by Steen Thomsen; Torben Pedersen

Book ID
101240198
Publisher
John Wiley and Sons
Year
2000
Tongue
English
Weight
111 KB
Volume
21
Category
Article
ISSN
0143-2095

No coin nor oath required. For personal study only.

✦ Synopsis

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-tobook 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 ownersfamily, 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.

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