Ownership concentration among entrepreneurial firms: The growth-control trade-off

Shaojie Lai, Hongyan Liang, Zilong Liu, Xiaoling Pu and Jianing Zhang

International Review of Economics & Finance, 2022, vol. 78, issue C, 122-140

Abstract: There is much variation in ownership concentration among entrepreneurial firms cross-sectionally and over time. Growth potential, risk-sharing, and demand for external capital seem to be the main reasons behind the choice of low ownership concentration, and firms with diluted ownership show strong growth. After controlling for the firm fixed effects or the sample selection bias, we do not find any evidence suggesting a link between ownership concentration and other dimensions of firm performance. Therefore, the trade-off between growth aspiration and retention of dominant control of the firms may be critical in ownership structure decisions among entrepreneurial firms.

Keywords: Ownership concentration; Ownership-performance relation; Changes in ownership concentration; Propensity score matching; Growth-control trade-off (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S105905602100229X
Full text for ScienceDirect subscribers only

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:eee:reveco:v:78:y:2022:i:c:p:122-140

DOI: 10.1016/j.iref.2021.11.005

Access Statistics for this article

International Review of Economics & Finance is currently edited by H. Beladi and C. Chen

More articles in International Review of Economics & Finance from Elsevier
Bibliographic data for series maintained by Catherine Liu ().