Recent Studies on Common Ownership, Firm Behavior, and Market Outcomes

Martin C. Schmalz, Recent studies on common ownership, firm behavior, and market outcomes, Antitrust Bulletin 66 (1), 2021

56 Pages Posted: 12 Feb 2021

See all articles by Martin C. Schmalz

Martin C. Schmalz

CEPR; University of Oxford - Finance; CESifo; European Corporate Governance Institute (ECGI)

Date Written: January 19, 2021

Abstract

The literature on competitive effects of common ownership has grown at a fast rate in the past two years. Anticompetitive effects have been confirmed with alternative reduced-form and structural estimation methods, in different industries, geographies and jurisdictions. Multiple independent studies have disproven early critiques of the literature. Other papers document the heterogeneity of common ownership effects on competition across markets and industries. Important advances were made on the study of the economic mechanisms and governance channels that implement anticompetitive incentives. New theory refines the interpretation of existing work. Access to high-quality ownership and product-market data remains a bottleneck for high-quality research in the area.

Keywords: ownership, control, industry concentration, antitrust, competition, managerial incentives, corporate governance

JEL Classification: D21, D22, G10, G30, G32, G34, J41, K21, L10, L16, L21, L40, L41, L42

Suggested Citation

Schmalz, Martin C. and Schmalz, Martin C., Recent Studies on Common Ownership, Firm Behavior, and Market Outcomes (January 19, 2021). Martin C. Schmalz, Recent studies on common ownership, firm behavior, and market outcomes, Antitrust Bulletin 66 (1), 2021, Available at SSRN: https://ssrn.com/abstract=3725305 or http://dx.doi.org/10.2139/ssrn.3725305

Martin C. Schmalz (Contact Author)

CEPR ( email )

London
United Kingdom

University of Oxford - Finance ( email )

United States

CESifo ( email )

Poschinger Str. 5
Munich, DE-81679
Germany

European Corporate Governance Institute (ECGI) ( email )

c/o the Royal Academies of Belgium
Rue Ducale 1 Hertogsstraat
1000 Brussels
Belgium

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