Brown Bag Seminar Industrial Economics

Common ownership - when an investor holds shares in two companies - has recently attracted significant attention from policy-makers and researchers, studying mainly US firms. European firms, however, are different as top investors with large stakes, like governments, founding families and foundations are much more prevalent. This paper takes a well-known common ownership measure derived from theory, "lambda," capturing managerial incentives, and compares its implications for S&P Europe 350 firms to those of the S&P 500.