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Institutional Investors, Common Control, and Risk: An Investigation into Motives and Consequences
- Source :
- Review of Business. January, 2019, Vol. 39 Issue 1, p45, 15 p.
- Publication Year :
- 2019
-
Abstract
- This paper provides a synthesis of the recent literature related to corporate ownership issues and theoretical models of corporate and industry interactions linked through common ownership by institutional investors. The paper elaborates a theme observed by Azar and others with a focus on airlines (2017) and banking (2016). We supply a mathematical framework suggesting that homogeneity in operations of firms under common ownership may put the institutional owner's long-term interest at risk. To stimulate future research, we present a preliminary analysis of two sampled industries. Common ownership is also observed in other industries.<br />DIVERSIFIED VERSUS CONCENTRATED CORPORATE OWNERSHIP Before the Industrial Revolution, most business organizations were sole proprietorships or partnerships. After the Industrial Revolution, the scale of and the demand for capital in [...]
Details
- Language :
- English
- ISSN :
- 00346454
- Volume :
- 39
- Issue :
- 1
- Database :
- Gale General OneFile
- Journal :
- Review of Business
- Publication Type :
- Periodical
- Accession number :
- edsgcl.572144945