Rossetto, Silvia, Selmane, Nassima and Stagliano, Raffaele (2023) Ownership concentration and firm risk: the moderating role of mid-sized blockholders. Journal of Business Finance and Accounting, 50 (1-2). pp. 377-410. (In Press)

This is the latest version of this item.

[thumbnail of wp_tse_1346.pdf]
Download (1MB) | Preview
Identification Number : 10.1111/jbfa.12634


This study analyzes the relationship between mid-sized blockholders and firm risk. We show that ownership structure matters for firm risk beyond the first largest blockholder. Firms with multiple blockholders take more risk than firms with just one blockholder, even when controlling for the stake of the largest blockholder. Consistent with the diversification argument, we find that firm risk increases by 22% when the number of blockholders increases from one to two. Our results are robust to controlling for blockholder type and firm characteristics. We carry out various robustness checks to tackle endogeneity issues. More generally, we provide evidence that firms’ decisions are affected by mid-sized blockholders and not merely the largest blockholder. This is in line with theoretical predictions.

Item Type: Article
Language: English
Date: 2023
Refereed: Yes
Divisions: TSE-R (Toulouse)
Site: UT1
Date Deposited: 09 Sep 2022 11:42
Last Modified: 13 Apr 2023 12:23
OAI Identifier:

Available Versions of this Item

View Item


Downloads per month over past year