Does it matter who owns firms? Evidence on the impact of supermajority control on private firms in Europe
The result's identifiers
Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F62156489%3A43110%2F24%3A43925373" target="_blank" >RIV/62156489:43110/24:43925373 - isvavai.cz</a>
Result on the web
<a href="https://doi.org/10.1016/j.irfa.2024.103427" target="_blank" >https://doi.org/10.1016/j.irfa.2024.103427</a>
DOI - Digital Object Identifier
<a href="http://dx.doi.org/10.1016/j.irfa.2024.103427" target="_blank" >10.1016/j.irfa.2024.103427</a>
Alternative languages
Result language
angličtina
Original language name
Does it matter who owns firms? Evidence on the impact of supermajority control on private firms in Europe
Original language description
We explore how the type of owner affects private enterprise investment decisions in Europe. In contrast to the literature, we analyze firms with concentrated (>95%) ownership stakes to reduce the potential that agency problems contaminate our results. We consider four types of supermajority owners - family, institutional, corporate, and state and use detailed ownership and financial information from a large sample of private firms from 24 European countries from 2001 to 2018. We find that family-owned firms exhibit higher gross investment rates and substantially higher sensitivity to investment opportunities, profitability, cash flow, and value-added growth compared to corporate and institutional owners. At the same time, and more consistent with the literature, family-owned firms invest significantly less in intangible assets than other ownership types. To demonstrate the robustness of our results, we employ matching samples complemented by analysis of owner-type transitions from family owners to corporate and institutional owners.
Czech name
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Czech description
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Classification
Type
J<sub>imp</sub> - Article in a specialist periodical, which is included in the Web of Science database
CEP classification
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OECD FORD branch
50202 - Applied Economics, Econometrics
Result continuities
Project
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Continuities
I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace
Others
Publication year
2024
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Name of the periodical
International Review of Financial Analysis
ISSN
1057-5219
e-ISSN
1873-8079
Volume of the periodical
95
Issue of the periodical within the volume
October
Country of publishing house
US - UNITED STATES
Number of pages
19
Pages from-to
103427
UT code for WoS article
001270383500001
EID of the result in the Scopus database
2-s2.0-85198213166