Ownership Structure, Control Type Classifications and the Performance of Large British Companies

Dennis Leech and John Leahy

Economic Journal, 1991, vol. 101, issue 409, 1418-37

Abstract: Ownership structure among 470 U.K. listed companies is described by concentration indices and by "control type," the latter defined using both a fixed percentage shareholding and the "degree of control." The authors also test for possible controlling coalitions among groups of shareholders. Control-type effects on performance are tested using reduced-form equations for valuation ratio, profit margin, return on capital, growth rates, and directors' pay. There is no clear evidence to support managerial theories. Ownership structure is analyzed with the results that greater size and capital cost (beta) imply greater shareholding dispersion. A probit model of control type gives weak results. Copyright 1991 by Royal Economic Society.

Date: 1991
References: Add references at CitEc
Citations: View citations in EconPapers (133)

Downloads: (external link)
http://links.jstor.org/sici?sici=0013-0133%2819911 ... 0.CO%3B2-G&origin=bc full text (application/pdf)
Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.

Related works:
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:ecj:econjl:v:101:y:1991:i:409:p:1418-37

Ordering information: This journal article can be ordered from
http://www.blackwell ... al.asp?ref=0013-0133

Access Statistics for this article

Economic Journal is currently edited by Martin Cripps, Steve Machin, Woulter den Haan, Andrea Galeotti, Rachel Griffith and Frederic Vermeulen

More articles in Economic Journal from Royal Economic Society Contact information at EDIRC.
Bibliographic data for series maintained by Wiley-Blackwell Digital Licensing () and Christopher F. Baum ().