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Interventions by Common Owners
[The Tax Acrobatics in the Dow-DuPont Deal]

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  • Nathan Shekita

Abstract

Common ownership exists when investors concurrently hold partial and significant shares in related firms. In this paper, I compile, document, and taxonomize 30 separate cases of intervention to demonstrate how common owners influence firm behavior. Although previous literature has identified a link between common ownership and product market outcomes, critics have questioned a common owner’s ability and incentive to alter the behavior of portfolio firms. Missing from the debate are observable interventions from common owners and the mechanisms through which common owners exercise their influence. This paper compiles relevant case studies from media coverage, regulatory proceedings, policy groups, and annual stewardship reports to uncover these channels.

Suggested Citation

  • Nathan Shekita, 2022. "Interventions by Common Owners [The Tax Acrobatics in the Dow-DuPont Deal]," Journal of Competition Law and Economics, Oxford University Press, vol. 18(1), pages 99-134.
  • Handle: RePEc:oup:jcomle:v:18:y:2022:i:1:p:99-134.
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    File URL: http://hdl.handle.net/10.1093/joclec/nhab006
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    Cited by:

    1. Vives, Xavier & Banal-Estanol, Albert & Seldeslachts, Jo, 2022. "Ownership Diversification and Product Market Pricing Incentives," CEPR Discussion Papers 17686, C.E.P.R. Discussion Papers.
    2. Hutschenreiter, Dennis, 2023. "Common Ownership and the Market for Technology," VfS Annual Conference 2023 (Regensburg): Growth and the "sociale Frage" 277640, Verein für Socialpolitik / German Economic Association.

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