Ownership Concentration and Share Valuation: Evidence from Germany
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) outweigh the harmful effect (greater private benefits of control due to greater control rights).
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Bibliographic InfoPaper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 193.
Date of creation: 1999
Date of revision:
Ownership structure; firm performance;
Other versions of this item:
- Jeremy S.S. Edwards & Alfons J. Weichenrieder, . "Ownership Concentration and Share Valuation: Evidence from Germany," EPRU Working Paper Series 99-22, Economic Policy Research Unit (EPRU), University of Copenhagen. Department of Economics.
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