Ownership and Control of German Corporations

Mayer, Colin and Franks, Julian (2001) Ownership and Control of German Corporations. Review of Financial Studies, 14 (4). pp. 943-977.


In a study of the ownership of German corporations, we find a strong relation between board turnover and corporate performance, little association of concentrations of ownership with managerial disciplining, and only limited evidence that pyramid structures can be used for control purposes. The static relationship of ownership to control in Germany is therefore similar to the United Kingdom and the United States. However, there are marked differences in dynamic relations involving transfers of ownership. There is an active market in share blocks giving rise to changes in control, but the gains are limited and accrue solely to the holders of large blocks, not to minority investors. We provide evidence of low overall benefits to control changes and the exploitation of private benefits of control.

Item Type: Article
Keywords: Capitalists & financiers; Corporations; Stock ownership; Industrial management; Performance; finance
Subject(s): Finance
Date Deposited: 26 Feb 2012 15:43
Last Modified: 20 Sep 2018 08:31
Funders: N/A
URI: http://eureka.sbs.ox.ac.uk/id/eprint/2552

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