The Evolution of Ownership and Control in German Ipos: A Dynamic Analysis
Posted: 3 Nov 1998
Date Written: February 1995
Abstract
This paper provides an alternative analysis of German IPOs by looking at the evolution of control and ownership. Most companies are floated by families and in a majority of companies control stays with the family six years after the flotation. Control is not gradually dispersed by sales on the market, but is directly transferred to the new controlling shareholder. There is a positive relationship between the stake size of the family and the family members sitting on the supervisory and management boards. The seats held by banks on the supervisory boards date back to the time before the IPO and do not depend on holdings by the banks.
JEL Classification: G32, G34
Suggested Citation: Suggested Citation