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Ownership concentration beyond good and evil: is there an effect on corporate performance?

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  • Christian Weiss
  • Stefan Hilger

Abstract

In this paper, we analyze the relationship between ownership concentration and firm performance, while accounting for the endogeneity of the ownership structure, a potential curvilinearity of the performance effect, differences in corporate governance systems, and alternative performance measures. Using a sample of 1,079 firms from 8 countries we find evidence for a curvilinear effect of ownership concentration on firm performance, which becomes insignificant after controlling for endogeneity. Hence, our results support the findings by Demsetz and Villalonga (J Corp Fin 7(3):209–233, 2001 ). More research is needed to disentangle the contradictory findings in prior works. Copyright Springer Science+Business Media, LLC. 2012

Suggested Citation

  • Christian Weiss & Stefan Hilger, 2012. "Ownership concentration beyond good and evil: is there an effect on corporate performance?," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 16(4), pages 727-752, November.
    • Handle: RePEc:kap:jmgtgv:v:16:y:2012:i:4:p:727-752
    DOI: 10.1007/s10997-011-9170-9
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