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Who Controls US?

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  • Yoser Gadhoum
  • Larry H. P. Lang
  • Leslie Young

Abstract

Berle and Means asserted that US corporations typically have dispersed shareholders; their evidence did not support this conclusion. Today, 59.74% of US corporations have ‘controlling shareholders’ who hold at least 10% of the shares; 24.57% are controlled and managed by a family; 16.33% are controlled by a widely‐held financial institution; 13.55% are controlled through family trusts. In all size ranges, the USA has more corporations controlled by families than by financial institutions. In almost all size ranges, it has a higher percentage of family‐controlled corporations than any of next four largest economies.

Suggested Citation

  • Yoser Gadhoum & Larry H. P. Lang & Leslie Young, 2005. "Who Controls US?," European Financial Management, European Financial Management Association, vol. 11(3), pages 339-363, June.
    • Handle: RePEc:bla:eufman:v:11:y:2005:i:3:p:339-363
    DOI: 10.1111/j.1354-7798.2005.00287.x
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    3. Poulsen, Thomas, 2008. "Investment decisions with benefits of control," Finance Research Group Working Papers F-2008-02, University of Aarhus, Aarhus School of Business, Department of Business Studies.
    4. Ayadi, Mohamed A. & Chaibi, Anis & Kryzanowski, Lawrence, 2016. "Performance of Canadian hybrid mutual funds," The North American Journal of Economics and Finance, Elsevier, vol. 38(C), pages 124-147.
    5. Guidi, Marco G.D. & Hillier, Joe & Tarbert, Heather, 2010. "Successfully reshaping the ownership relationship by reducing ‘moral debt’ and justly distributing residual claims: The cases from Scott Bader Commonwealth and the John Lewis Partnership," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 21(4), pages 318-328.
    6. Nico Dewaelheyns & Cynthia Van Hulle, 2010. "Internal Capital Markets and Capital Structure: Bank Versus Internal Debt," European Financial Management, European Financial Management Association, vol. 16(3), pages 345-373, June.
    7. Mehmet Ekmekci & Nenad Kos, 2016. "Information in Tender Offers With a Large Shareholder," Econometrica, Econometric Society, vol. 84, pages 87-139, January.
    8. Thomas Poulsen, 2013. "Corporate control and underinvestment," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 17(1), pages 131-155, February.
    9. King, Michael R. & Santor, Eric, 2008. "Family values: Ownership structure, performance and capital structure of Canadian firms," Journal of Banking & Finance, Elsevier, vol. 32(11), pages 2423-2432, November.
    10. Kryzanowski, Lawrence & Zhang, Ying, 2013. "Financial restatements and Sarbanes–Oxley: Impact on Canadian firm governance and management turnover," Journal of Corporate Finance, Elsevier, vol. 21(C), pages 87-105.
    11. Liu, Chunyan & Uchida, Konari & Yang, Yufeng, 2014. "Controlling shareholder, split-share structure reform and cash dividend payments in China," International Review of Economics & Finance, Elsevier, vol. 29(C), pages 339-357.
    12. Holger M. Mueller & Thomas Philippon, 2011. "Family Firms and Labor Relations," American Economic Journal: Macroeconomics, American Economic Association, vol. 3(2), pages 218-245, April.
    13. Claudio Michelacci & Fabiano Schivardi, 2013. "Does Idiosyncratic Business Risk Matter For Growth?," Journal of the European Economic Association, European Economic Association, vol. 11(2), pages 343-368, April.
    14. Victor Dorofeenko & Larry Lang & Klaus Ritzberger & Jamsheed Shorish, 2008. "Who controls Allianz?," Annals of Finance, Springer, vol. 4(1), pages 75-103, January.
    15. Gregorič, Aleksandra & Rapp, Marc Steffen & Requejo, Ignacio, 2022. "Listed family firms in Europe: Relevance, characteristics and performance," Studien, Stiftung Familienunternehmen / Foundation for Family Businesses, number 273172.
    16. Antonio Pedro Soares Pinto & Mario Gomes Augusto, 2014. "Are There Non-linear Effects of Banking Relationships and Ownership Concentration on Operational Performance? Empirical Evidence from Portuguese SMEs Using Cross-section Analysis and Panel Data," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 5(4), pages 67-84, October.
    17. Poulsen, Thomas, 2008. "Private benefits in corporate control transactions," Finance Research Group Working Papers F-2008-03, University of Aarhus, Aarhus School of Business, Department of Business Studies.
    18. Ettore Croci & John A. Doukas & Halit Gonenc, 2011. "Family Control and Financing Decisions," European Financial Management, European Financial Management Association, vol. 17(5), pages 860-897, November.
    19. Erik Dietzenbacher & Umed Temurshoev, 2008. "Ownership relations in the presence of cross-shareholding," Journal of Economics, Springer, vol. 95(3), pages 189-212, December.
    20. Poulsen, Thomas, 2011. "Private benefits in corporate control transactions," International Review of Financial Analysis, Elsevier, vol. 20(1), pages 52-58, January.
    21. Lozano, Maria Belen, 2015. "Decisões estratégicas de empresas familiares sobre acúmulo de dinheiro," RAE - Revista de Administração de Empresas, FGV-EAESP Escola de Administração de Empresas de São Paulo (Brazil), vol. 55(4), July.

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