Keeping It Real or Keeping It Simple? Ownership Concentration Measures Compared
Mavruk, T., Overland, C., & Sjögren, S. (2019). Keeping it real or keeping it simple? Ownership concentration measures compared. European Financial Management, 1-48, 12249. Accepted version available at: doi 10.1111/eufm.12249
49 Pages Posted: 19 Dec 2019
Date Written: December 5, 2019
We analyze the distributional properties of ownership concentration measures and find that measures come from different underlying statistical distributions. Consistent with theory, some measures that are classified to represent a monitoring dimension have a positive influence on firm performance; other measures that are interpreted to represent a shareholder conflict dimension are negatively related to firm performance. However, other measures deviate from this pattern, and therefore, we cannot conclude that simple measures can replace complicated measures. Some measures are more suitable for analyzing the relationship between management and owners, whereas other measures are more suitable for analyzing the relationships among owners.
Keywords: distributional properties, monitoring dimension, ownership concentration measures, shareholder conflict dimension
JEL Classification: C18, C46, C81, D74, G34, L25
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