Common ownership and competition in product markets

• 成果类型: Article
• 署名作者: Koch, Andrew; Panayides, Marios; Thomas, Shawn
• 署名单位: Pennsylvania Commonwealth System of Higher Education (PCSHE); University of Pittsburgh; University of Cyprus
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2020.07.007
• 发表日期: 2021
• 页码: 109-137
• 关键词: COMMON OWNERSHIP; governance; COMPETITION; horizontal merger

摘要

We investigate the relation between common institutional ownership of the firms in an industry and product market competition. We find that common ownership is neither robustly positively related with industry profitability or output prices nor is it robustly negatively related with measures of nonprice competition, as would be expected if common ownership reduces competition. This conclusion holds regardless of industry classification choice, common ownership measure, profitability measure, nonprice competition proxy, or model specification. Our point estimates are close to zero with tight bounds, rejecting even modestly sized economic effects. We conclude that antitrust restrictions seeking to limit intra-industry common ownership are not currently warranted. (C) 2020 Elsevier B.V. All rights reserved.