Corporate Equity Ownership, Strategic Alliances and Product Market Relationships

31 Pages Posted: 9 Nov 2000

See all articles by Jeffrey Allen

Jeffrey Allen

affiliation not provided to SSRN

Gordon M. Phillips

Dartmouth College - Tuck School of Business; National Bureau of Economic Research (NBER)

Multiple version iconThere are 2 versions of this paper

Date Written: December 1999

Abstract

This paper examines long-term block ownership by corporations and performance changes in firms with corporate block owners. We also examine potential reasons for corporate ownership including benefits in product market relationships, alleviation of financing constraints, and board monitoring by corporate owners. We find the largest significant increases in targets' stock prices, investment, and operating profitability when ownership is combined with product market relationships between purchasing and target firms, especially in industries with high research and development. Our findings are consistent with the conclusion that block ownership by corporations has significant benefits in product market relationships.

JEL Classification: G20

Suggested Citation

Allen, Jeffrey and Phillips, Gordon M., Corporate Equity Ownership, Strategic Alliances and Product Market Relationships (December 1999). Available at SSRN: https://ssrn.com/abstract=244727 or http://dx.doi.org/10.2139/ssrn.244727

Jeffrey Allen

affiliation not provided to SSRN

Gordon M. Phillips (Contact Author)

Dartmouth College - Tuck School of Business ( email )

Hanover, NH 03755
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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