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Keeping it real or keeping it simple? Ownership concentration measures compared
Author(s) -
Mavruk Taylan,
Overland Conny,
Sjögren Stefan
Publication year - 2020
Publication title -
european financial management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.311
H-Index - 64
eISSN - 1468-036X
pISSN - 1354-7798
DOI - 10.1111/eufm.12249
Subject(s) - shareholder , dimension (graph theory) , simple (philosophy) , econometrics , measure (data warehouse) , business , computer science , economics , mathematics , corporate governance , data mining , finance , philosophy , epistemology , pure mathematics
We analyze the distributional properties of ownership concentration measures and find that measures come from different underlying statistical distributions. Consistent with theory, some measures that are classified to represent a monitoring dimension have a positive influence on firm performance; other measures that are interpreted to represent a shareholder conflict dimension are negatively related to firm performance. However, other measures deviate from this pattern, and therefore, we cannot conclude that simple measures can replace complicated measures. Some measures are more suitable for analyzing the relationship between management and owners, whereas other measures are more suitable for analyzing the relationships among owners.