One Half-Billion Shareholders and Counting-Determinants of Individual Share Ownership Around the World

45 Pages Posted: 22 Mar 2009 Last revised: 1 Dec 2009

See all articles by Paul A. Grout

Paul A. Grout

University of Bristol - Leverhulme Centre for Market and Public Organisation (CMPO)

William L. Megginson

University of Oklahoma

Anna (Ania) Zalewska

University of Bath - Centre for Governance, Regulation and Industrial Strategy; School of Management

Multiple version iconThere are 2 versions of this paper

Date Written: December 1, 2009

Abstract

This study presents the first comprehensive compilation of the number of people around the world owning shares voluntarily. We document that at least 317 million people in 70 countries (24 developed and 46 emerging market nations) invest in equity of publically listed companies or mutual funds. Accounting for contributors of voluntarily pension schemes investing in equity increases the number of shareholders to over 544 million. We also test for determinants of personal shareholdings and find that (i) the legal origin matters (common law countries have statistically significantly higher percentage of population investing in equity), (ii) GDP per capita also matters but its significance is driven by emerging markets (in particular those opened before 1985), and (iii) privatisation does not contribute to higher levels of shareholder participation in the medium- and long-run.

Keywords: Government policy and regulation, Capital and ownership structure, Property rights, Legal origin, International finance, Emerging markets

JEL Classification: G18, G32, P14

Suggested Citation

Grout, Paul A. and Megginson, William L. and Zalewska, Anna, One Half-Billion Shareholders and Counting-Determinants of Individual Share Ownership Around the World (December 1, 2009). Available at SSRN: https://ssrn.com/abstract=1364765 or http://dx.doi.org/10.2139/ssrn.1364765

Paul A. Grout

University of Bristol - Leverhulme Centre for Market and Public Organisation (CMPO) ( email )

Mary Paley Building
12 Priory Road Department of Economics
Bristol BS8 1TN
United Kingdom

William L. Megginson

University of Oklahoma ( email )

307 W Brooks, 205A Adams Hall
Norman, OK 73019
United States
(405) 325-2058 (Phone)
(405) 325-1957 (Fax)

HOME PAGE: http://faculty-staff.ou.edu/M/William.L.Megginson-

Anna Zalewska (Contact Author)

University of Bath - Centre for Governance, Regulation and Industrial Strategy; School of Management ( email )

Claverton Down
Bath, BA2 7AY
United Kingdom
+44 0 1225 384354 (Phone)
+44 0 1226 384354 (Fax)

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