Ownership concentration, market monitoring and performance: Evidence from the UK, the Czech Republic and Poland

Vahe Lskavyan, Mariana Spatareanu

Research output: Contribution to journalArticlepeer-review

7 Scopus citations

Abstract

Using data for publicly traded companies from the UK and two transition countries, the Czech Republic and Poland, we analyze the relationship between ownership concentration and performance while also accounting for the effect of hostile takeover threats on this relationship. Some argue that ownership concentration will improve performance by making the owners more willing or able to monitor managers. Others argue that in the presence of efficient markets, market monitoring (via the threat of hostile takeovers) will discipline the managers. Our results show that concentration is insignificant in explaining performance both in the transition countries, where market monitoring is supposedly weak, and in the UK, where market monitoring is supposedly strong.

Original languageEnglish (US)
Pages (from-to)91-104
Number of pages14
JournalJournal of Applied Economics
Volume9
Issue number1
DOIs
StatePublished - May 2006

All Science Journal Classification (ASJC) codes

  • Economics, Econometrics and Finance(all)

Keywords

  • Markets for corporate control
  • Ownership concentration

Fingerprint

Dive into the research topics of 'Ownership concentration, market monitoring and performance: Evidence from the UK, the Czech Republic and Poland'. Together they form a unique fingerprint.

Cite this