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Are Ownership Structures Risk- & Wealth-Constrained?

Author

Listed:
  • Jørgen Drud Hansen

    (The Aarhus School of Business, Denmark)

  • Camilla Jensen

    (The Aarhus School of Business, Denmark)

  • Erik Strøjer Madsen

    (The Aarhus School of Business, Denmark)

Abstract

The paper considers the owners of the firms as normal investors who want to optimise the return from their investments in accordance with their wealth constraint and the risk of their investment in the firm. The paper tests this theory on a representative sample of Danish companies including small firms. Concerning the wealth constraint for owners, the study finds evidence of more dispersed ownership in larger and more capital-demanding firms. According to the investors risk aspect, firms operating on foreign markets are more likely to have more than one owner. Concerning the domestic markets the owner structure is more dispersed in industries with a volatile business cycle.

Suggested Citation

  • Jørgen Drud Hansen & Camilla Jensen & Erik Strøjer Madsen, 2002. "Are Ownership Structures Risk- & Wealth-Constrained?," CIE Discussion Papers 2002-08, University of Copenhagen. Department of Economics. Centre for Industrial Economics.
    • Handle: RePEc:kud:kuieci:2002-08
    as

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    File URL: http://www.econ.ku.dk/cie/dp/dp_2000-2002/2002-08.pdf/
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    References listed on IDEAS

    as
    1. Rafael La Porta & Florencio Lopez‐De‐Silanes & Andrei Shleifer, 1999. "Corporate Ownership Around the World," Journal of Finance, American Finance Association, vol. 54(2), pages 471-517, April.
    2. Amemiya, Takeshi, 1981. "Qualitative Response Models: A Survey," Journal of Economic Literature, American Economic Association, vol. 19(4), pages 1483-1536, December.
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    More about this item

    Keywords

    corporate governance; ownership structures;

    JEL classification:

    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
    • D2 - Microeconomics - - Production and Organizations

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