Arbeitspapier
Ownership diversification and product market pricing incentives
We link investor ownership to profit loads on rival firms by the managers of a firm. We propose a theory model in which we distinguish between passive and active investors' holdings, where passive investors are relatively more diversified. We find that if passive investors become relatively bigger, then common ownership incentives increase. We show that these higher incentives, in turn, are linked to higher firm markups. We empirically confirm these relationships for public US firms in the years 2004-2012, where the financial crisis coincides with passive investors' rise. The found effects are small but non-negligible.
- Language
-
Englisch
- Bibliographic citation
-
Series: DIW Discussion Papers ; No. 2023
- Classification
-
Wirtschaft
- Subject
-
Common ownership
investor diversification
product markets
- Event
-
Geistige Schöpfung
- (who)
-
Banal-Estañol, Albert
Seldeslachts, Jo
Vives, Xavier
- Event
-
Veröffentlichung
- (who)
-
Deutsches Institut für Wirtschaftsforschung (DIW)
- (where)
-
Berlin
- (when)
-
2022
- Handle
- Last update
-
10.03.2025, 11:45 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Banal-Estañol, Albert
- Seldeslachts, Jo
- Vives, Xavier
- Deutsches Institut für Wirtschaftsforschung (DIW)
Time of origin
- 2022
Other Objects (12)
Ownership diversification and product market pricing incentives
Diversification and ownership concentration
Aid for Trade, Export Product Diversification and Import Product Diversification
Incomplete Diversification and Asset Pricing
Incomplete diversification and asset pricing
Partial Public Ownership and Managerial Incentives
Deposit insurance: Pricing and incentives
Product Differentiation on Roads: Second-Best Congestion Pricing with Heterogeneity under Public and Private Ownership
Product Differentiation on Roads: Second-Best Congestion Pricing with Heterogeneity under Public and Private Ownership
Common Ownership, Competition, and Top Management Incentives
Technology diversification, product innovations, and technology transfer
Product Ownership meistern : Produkte erfolgreich entwickeln
Ownership diversification and product market pricing incentives
Diversification and ownership concentration
Aid for Trade, Export Product Diversification and Import Product Diversification
Incomplete Diversification and Asset Pricing
Incomplete diversification and asset pricing
Partial Public Ownership and Managerial Incentives
Deposit insurance: Pricing and incentives
Product Differentiation on Roads: Second-Best Congestion Pricing with Heterogeneity under Public and Private Ownership
Product Differentiation on Roads: Second-Best Congestion Pricing with Heterogeneity under Public and Private Ownership
Common Ownership, Competition, and Top Management Incentives
Technology diversification, product innovations, and technology transfer
Product Ownership meistern : Produkte erfolgreich entwickeln
Ownership diversification and product market pricing incentives
Diversification and ownership concentration
Aid for Trade, Export Product Diversification and Import Product Diversification
Incomplete Diversification and Asset Pricing
Incomplete diversification and asset pricing
Partial Public Ownership and Managerial Incentives
Deposit insurance: Pricing and incentives
Product Differentiation on Roads: Second-Best Congestion Pricing with Heterogeneity under Public and Private Ownership
Product Differentiation on Roads: Second-Best Congestion Pricing with Heterogeneity under Public and Private Ownership
Common Ownership, Competition, and Top Management Incentives
Technology diversification, product innovations, and technology transfer