Common Ownership: Europe vs. the US

Nuria Boot, Jo Seldeslachts and Albert Banal Estanol

No 2015, Discussion Papers of DIW Berlin from DIW Berlin, German Institute for Economic Research

Abstract: Common ownership - when an investor holds shares in two or more companies - has recently attracted significant attention from policy-makers and researchers, studying mainly US firms. European firms, however, are different as top investors with large stakes, like governments, founding families and foundations are much more prevalent. This paper takes a well-known common ownership with micro-economic foundations, lambda, capturing managerial incentives, and compares its implications for S&P Europe 350 firms to those of the S&P 500 for the period 2004-2015 by looking at within, across and global lambda patterns of the European and US S&P companies. We find that US companies have a higher lambda, but European firms’ lambda become both faster connected within Europe and across with their US counterpart where the latter is even more pronounced. Both patterns can be traced back to US investment managers’ increasing global reach.

Keywords: Ownership structure; S&P 500; S&P 350 (search for similar items in EconPapers)
JEL-codes: G23 G32 K15 (search for similar items in EconPapers)
Pages: 32 p.
Date: 2022
New Economics Papers: this item is included in nep-law
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.diw.de/documents/publikationen/73/diw_01.c.850086.de/dp2015.pdf (application/pdf)

Related works:
Working Paper: Common ownership: Europe vs. the US (2022)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:diw:diwwpp:dp2015

Access Statistics for this paper

More papers in Discussion Papers of DIW Berlin from DIW Berlin, German Institute for Economic Research Contact information at EDIRC.
Bibliographic data for series maintained by Bibliothek ().