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Common ownership and the (non-)transparency of institutional shareholdings: An EU-US comparison

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  • Steuer, Sebastian

Abstract

This paper compares the extent of common ownership in the US and the EU stock markets, with a particular focus on differences in the applicable ownership transparency requirements. Most empirical research on common ownership to date has focused on US issuers, largely relying on ownership data obtained from institutional investors' 13F filings. This type of data is generally not available for EU issuers. Absent 13F filings, researchers have to use ownership records sourced from mutual funds' periodic reports and blockholder disclosures. Constructing a 'reduced dataset' that seeks to capture only ownership information available for both EU and US issuers, I demonstrate that the 'extra' ownership information introduced by 13F filings is substantial. However, even when taking differences in the transparency situation into due account, common ownership among listed EU firms is much less pronounced than among listed US firms by any measure. This is true even if the analysis is limited to non-controlled firms.

Suggested Citation

  • Steuer, Sebastian, 2022. "Common ownership and the (non-)transparency of institutional shareholdings: An EU-US comparison," SAFE Working Paper Series 354, Leibniz Institute for Financial Research SAFE.
    • Handle: RePEc:zbw:safewp:354
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    File URL: https://www.econstor.eu/bitstream/10419/262211/1/1812001355.pdf
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    Cited by:

    1. Mücke, Christian, 2023. "Bank dividend restrictions and banks' institutional investors," SAFE Working Paper Series 392, Leibniz Institute for Financial Research SAFE.

    More about this item

    Keywords

    common ownership; profit weights; ownership disclosure; 13Ffilings; index funds; passive investors; institutional investors; Big Three;
    All these keywords.

    JEL classification:

    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation
    • K22 - Law and Economics - - Regulation and Business Law - - - Business and Securities Law
    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
    • L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices

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