The Nature of Corporate Ownership in the US: The Trend Towards the Market Oriented Blockholder Model

Capital Markets Law Journal, Vol. 5, No. 1, pp. 63-68, January 2010

Posted: 8 Dec 2009 Last revised: 17 Dec 2009

See all articles by Aviv Pichhadze

Aviv Pichhadze

affiliation not provided to SSRN

Date Written: December 1, 2009

Abstract

This article examines the assumption that the ownership pattern in the US public firm is aptly characterized as diffused and argues that the evolutionary trend in the US has been towards a hybrid ownership structure, which I refer to as the Market Oriented Blockholder Model (MOBM). Under the model, it appears that market forces in the US equity markets have been pushing towards a state of ownership structure that affords the benefits of (i) increased monitoring (associated with the concentrated ownership model) and (ii) increased liquidity in the capital markets (associated with the dispersed ownership model). Implications of the MOBM to the convergence/divergence debate are also discussed.

Keywords: Blockholders, Capital Markets, Corporate Control, Corporate Governance, Evolution, Institutional Investors, Ownership

JEL Classification: G10, G18, G23, G32, G34, G38, K22

Suggested Citation

Pichhadze, Aviv, The Nature of Corporate Ownership in the US: The Trend Towards the Market Oriented Blockholder Model (December 1, 2009). Capital Markets Law Journal, Vol. 5, No. 1, pp. 63-68, January 2010, Available at SSRN: https://ssrn.com/abstract=1520561

Aviv Pichhadze (Contact Author)

affiliation not provided to SSRN

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Abstract Views
780
PlumX Metrics