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Ownership and Control of German Corporations

  • Colin Mayer
  • Julian Franks

In a study of the ownership of German corporations, we find a strong relation between board turnover and corporate performance, little association of concentrations of ownership with managerial disciplining and only limited evidence that pyramid structures can be used for control purposes. The static relation of ownership to control in Germany is therefore similar to the UK and US. However, there are marked differences in the dynamic relation transfers of ownership. There is an active market in share blocks giving rise to changes in control but the gains are limited and accrue solely to the holders of large blocks, not to minority investors. We provide evidence of low overall benefits to control changes and the exploitation of private benefits of control.

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Paper provided by University of Oxford, Department of Economics in its series Economics Series Working Papers with number 2001-FE-11.

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Date of creation: 01 Aug 2000
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Handle: RePEc:oxf:wpaper:2001-fe-11
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