Common ownership: Europe vs. the US

Nuria Boot, Jo Seldeslachts and Albert Banal Estañol

No 700180, Working Papers of Department of Management, Strategy and Innovation, Leuven from KU Leuven, Faculty of Economics and Business (FEB), Department of Management, Strategy and Innovation, Leuven

Abstract: Common ownership - when an investor holds shares in two or more companies - has recently attracted signi cant attention from policy-makers and researchers, studying mainly US rms. European rms, however, are di erent 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 rms 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 nd that US companies have a higher lambda, but European rms' 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.

Pages: 31
Date: 2022-08-19
New Economics Papers: this item is included in nep-ifn
Note: paper number MSI_2205
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Published in FEB Research Report MSI_2205, pages 1-31

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Working Paper: Common Ownership: Europe vs. the US (2022)
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Persistent link: https://EconPapers.repec.org/RePEc:ete:msiper:700180

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