We analyze the relative importance of firm-, industry-, and country-level factors as determinants of the level of ownership concentration of firms. We apply hierarchical linear models to a sample of 900 firms from nine countries. Our models explain up to 28% of the variance in ownership concentration. The results show that firm- and country-level factors influence ownership concentration far more strongly than industry-level factors do. The institutional context in which companies operate has a relatively large effect on ownership concentration. Our results should spark further multi-level research on the relationship between environmental factors on the country level and the allocation of ownership rights.

Ownership concentration, Corporate governance, Hierarchical linear modeling
dx.doi.org/10.1016/j.irle.2012.08.003, hdl.handle.net/1765/134019
International Review of Law and Economics
Rotterdam School of Management (RSM), Erasmus University

Richter, A., & Weiss, C. (2013). Determinants of Ownership Concentration in Public Firms: The Importance of Firm-, Industry- and Country-Level Factors. International Review of Law and Economics, 33(March 2013), 1–14. doi:10.1016/j.irle.2012.08.003