Competition and Ownership Structure of Closely Held Firms

• 成果类型: Article
• 署名作者: Bena, Jan; Xu, Ting
• 署名单位: University of British Columbia
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hhx002
• 发表日期: 2017
• 页码: 1583
• 关键词: product market competition; import competition; MANAGERIAL OWNERSHIP; corporate governance; large shareholders; capital structure; IMPACT; POWER; RISK; determinants

摘要

We study how product market competition affects firms' ownership structures using a large sample of closely held firms in eighteen European countries. We show that firms operating in more competitive environments have lower inside ownership and that the stakes of their outside shareholders are more dispersed. These results are explained by competition increasing the need to raise external equity and reducing private control benefits. Our findings suggest that, by changing corporate ownership structure, competition mitigates incentive misalignment among shareholders, leading to better firm performance and gains in economic efficiency.