Ownership Concentration and Share Valuation
AbstractConcentrated ownership of large listed companies is widespread throughout the world, and Germany is typical in this respect. This paper proposes a method of distinguishing empirically between the beneficial and harmful effects of ownership concentration, and applies it to German data. The results show that, for most types of largest shareholder, the beneficial effects on minority shareholders of increased ownership (greater monitoring of management, and reduced incentives to exploit minority shareholders due to greater cash-flow rights) are at least as large as, and sometimes significantly larger than, the harmful effect (greater private benefits of control due to greater control rights). Copyright Verein für Socialpolitik and Blackwell Publishing Ltd. 2004.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Verein für Socialpolitik in its journal German Economic Review.
Volume (Year): 5 (2004)
Issue (Month): 2 (05)
Contact details of provider:
Web page: http://www.blackwellpublishing.com/journal.asp?ref=1465-6485
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Faccio, Mara & Lang, Larry H. P., 2002. "The ultimate ownership of Western European corporations," Journal of Financial Economics, Elsevier, vol. 65(3), pages 365-395, September.
- Larry H. P. Lang & Mara Faccio & Leslie Young, 2001. "Dividends and Expropriation," American Economic Review, American Economic Association, vol. 91(1), pages 54-78, March.
- Tim Jenkinson & Alexander Ljungqvist, 1999.
"The Role of Hostile Stakes in German Corporate Governance,"
OFRC Working Papers Series
1999fe02, Oxford Financial Research Centre.
- Jenkinson, Tim & Ljungqvist, Alexander, 2001. "The role of hostile stakes in German corporate governance," Journal of Corporate Finance, Elsevier, vol. 7(4), pages 397-446, December.
- Tim Jenkinson & Alexander Ljungqvist, 1999. "The Role of Hostile Stakes in German Corporate Governance," Economics Series Working Papers 1999-FE-02, University of Oxford, Department of Economics.
- Edwards,Jeremy & Fischer,Klaus, 1996. "Banks, Finance and Investment in Germany," Cambridge Books, Cambridge University Press, number 9780521566087, October.
- James Foreman-Peck & Leslie Hannah, 2012.
"Some Consequences of the Early Twentieth Century Divorce of Ownership from Control,"
0023, European Historical Economics Society (EHES).
- James Foreman-Peck & Leslie Hannah, 2012. "Some Consequences of the Early Twentieth Century Divorce of Ownership from Control," CIRJE F-Series CIRJE-F-864, CIRJE, Faculty of Economics, University of Tokyo.
- Schmidt, Reinhard H., 2003. "Corporate Governance in Germany: An Economic Perspective," CFS Working Paper Series 2003/36, Center for Financial Studies (CFS).
- Jeremy Edwards & Alfons Weichenrieder, 2004. "How Weak is the Weakest-Link Principle?On the Measurement of Firm Owners’Control Rights," CESifo Working Paper Series 1255, CESifo Group Munich.
- Ruiz-Mallorquí, María Victoria & Santana-Martín, Domingo J., 2011. "Dominant institutional owners and firm value," Journal of Banking & Finance, Elsevier, vol. 35(1), pages 118-129, January.
- Jostarndt, Philipp & Sautner, Zacharias, 2008. "Financial distress, corporate control, and management turnover," Journal of Banking & Finance, Elsevier, vol. 32(10), pages 2188-2204, October.
- Robert Chirinko & Hans van Ees & Harry Garretsen & Elmer Sterken, 2002.
"Investor Protections and Concentrated Ownership: Assessing Corporate Control Mechanisms in the Netherlands,"
0213, Department of Economics, Emory University (Atlanta).
- Robert Chirinko & Hans van Ees & Harry Garretsen & Elmer Sterken, 2004. "Investor Protections and Concentrated Ownership: Assessing Corporate Control Mechanisms in the Netherlands," German Economic Review, Verein für Socialpolitik, vol. 5(2), pages 119-138, 05.
- Robert S. Chirinko & Hans van Ees & Harry Garretsen & Elmer Sterken, 2003. "Investor Protections and Concentrated Ownership: Assessing Corporate Control Mechanisms in the Netherlands," CESifo Working Paper Series 864, CESifo Group Munich.
- Prabirjit Sarkar, 2008.
"Do the English Legal Origin Countries have more dispersed Share Ownership and more developed financial Systems?,"
ESRC Centre for Business Research - Working Papers
wp375, ESRC Centre for Business Research.
- Prabirjit Sarkar, 2009. "Do the English Legal Origin Countries have More Dispersed Share Ownership and More Developed Financial Systems?," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 16(1), pages 73-86.
- Kaserer, Christoph & Moldenhauer, Benjamin, 2006.
"Insider ownership and corporate performance: evidence from Germany,"
CEFS Working Paper Series
2005-01, Center for Entrepreneurial and Financial Studies (CEFS), Technische Universität München.
- Christoph Kaserer & Benjamin Moldenhauer, 2008. "Insider ownership and corporate performance: evidence from Germany," Review of Managerial Science, Springer, vol. 2(1), pages 1-35, March.
- Edwards, Jeremy S.S. & Weichenrieder, Alfons J., 2009.
"Control rights, pyramids, and the measurement of ownership concentration,"
Journal of Economic Behavior & Organization,
Elsevier, vol. 72(1), pages 489-508, October.
- Edwards, Jeremy S S & Weichenrieder, Alfons J, 2009. "Control Rights, Pyramids, and the Measurement of Ownership Concentration," MPRA Paper 13830, University Library of Munich, Germany.
- Joachim Schwalbach, 2004. "Discussion," German Economic Review, Verein für Socialpolitik, vol. 5(2), pages 173-176, 05.
- Alfons Weichenrieder, 2009.
"Profit shifting in the EU: evidence from Germany,"
International Tax and Public Finance,
Springer, vol. 16(3), pages 281-297, June.
- Salma Fourati, 2008. "Transferts négociés de blocs de contrôle, bénéfices privés et protection des actionnaires minoritaires," Post-Print halshs-00524890, HAL.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.