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Ownership Concentration, Market Monitoring and Performance: Evidence from the UK, the Czech Republic and Poland

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  • Vahe Lskavyan

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  • Mariana Spatareanu

    ()

Abstract

Using data for publicly traded companies from the UK and two transition countries, the Czech Republic and Poland, we analyze the relationship between ownership concentration and performance while also accounting for the effect of hostile takeover threats on this relationship. Some argue that ownership concentration will improve performance by making the owners more willing or able to monitor managers. Others argue that in the presence of efficient markets, market monitoring (via the threat of hostile takeovers) will discipline the managers. Our results show that concentration is insignificant in explaining performance both in the transition countries, where market monitoring is supposedly weak, and in the UK, where market monitoring is supposedly strong.

Suggested Citation

  • Vahe Lskavyan & Mariana Spatareanu, 2005. "Ownership Concentration, Market Monitoring and Performance: Evidence from the UK, the Czech Republic and Poland," Working Papers Rutgers University, Newark 2005-012, Department of Economics, Rutgers University, Newark.
  • Handle: RePEc:run:wpaper:2005-012
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    References listed on IDEAS

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    1. International Monetary Fund, 2001. "Republic of Poland; Financial System Stability Assessment," IMF Staff Country Reports 01/67, International Monetary Fund.
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    Cited by:

    1. Kashif Rashid & Seep Nadeem, 2014. "The Role of Ownership Concentration, its Types and Firm Performance: A Quantitative Study of Financial Sector in Pakistan," Oeconomics of Knowledge, Saphira Publishing House, vol. 6(2), pages 10-61, June.
    2. Baghdasaryan, Delia & la Cour, Lisbeth, 2013. "Competition, ownership and productivity. A panel analysis of Czech firms," Journal of Economics and Business, Elsevier, vol. 69(C), pages 86-100.

    More about this item

    Keywords

    Ownership Concentration; Markets for Corporate Control;

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance

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