Finance and Income inequality retraced
16 Pages Posted: 1 Dec 2019 Last revised: 9 Nov 2020
Date Written: November 15, 2019
We show the translation of income inequality into wealth inequality, arguably via the channel of corporate financing. For 15,812 publicly listed firms operating in 41 developed and developing countries, we find robust empirical evidence of a positive impact of national income inequality on corporate wealth concentration via firm ownership concentration. This is also a contribution, through a new explanatory factor identification, to the literature on firm ownership concentration.
Keywords: Corporate finance, Distribution of wealth, Firm ownership structure, Income inequality
JEL Classification: D31, G32; G38; H23
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