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Authors
Advisor(s)
Abstract(s)
This paper aims to ascertain how company-specific factors influence the corporate ownership concentration of
Portuguese firms. The paper employs several different regression techniques: Generalized Linear Model, Ordered
Logit, 2 Stage Least Squares, Ordinary Least Squares, Truncated and Constrained regression. Additionally, to test
the model's prediction power, it conducts an in and out-of-sample analysis and used joint-rolling window re-
gressions and dependent variables intervals partition to test the robustness of the model under different sample
restrictions. Firm size, profitability, the number of subsidiaries, and bank concentration are positive determinants
of ownership concentration, while an opposite influence is found concerning auditor qualification and the board
of directors' size. Significant implications are provided for the policymaking in countries where capital markets
are underdeveloped, and concentrated ownership is common to help the regulator determining the power of
controlling shareholders. This study enriches the literature on the determinants of corporate ownership, being the
first study to approach non-public companies. It adds novelty by incorporating new company factors which are
scarce in ownership studies.
Description
Keywords
Ownership concentration Board independence Company-specific factors Generalized linear model Ordered logit model
Citation
Reis, P. M. N., & Pinto, A. P. S. (2021). Corporate ownership concentration drivers in a context dominated by private SME's. Heliyon, 7(10), e08163.
Publisher
Elsevier Science Direct