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Does common ownership really increase firm coordination?
Journal article   Peer reviewed

Does common ownership really increase firm coordination?

Katharina Lewellen and Michelle Lowry
Journal of financial economics, v 141(1), pp 322-344
Jul 2021
DOI: https://doi.org/10.1016/j.jfineco.2021.03.008

Abstract

Common ownership Corporate governance Institutional ownership
A growing number of studies suggest that common ownership caused cooperation among firms to increase and competition to decrease. We take a closer look at four approaches used to identify these effects. We find that the effects that some studies have attributed to common ownership are caused by other factors, such as differential responses of firms (or industries) to the 2008 financial crisis. We propose a modification to one of the previously used empirical approaches that is less sensitive to these issues. Using this to re-evaluate the link between common ownership and firm outcomes, we find little robust evidence that common ownership affects firm behavior.

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109 citations in Web of Science
96 citations in Scopus

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Collaboration types
Domestic collaboration
Web of Science research areas
Business, Finance
Economics
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