Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/172428
Authors: 
Earle, John S.
Kucsera, Csaba
Telegdy, Almos
Year of Publication: 
2003
Series/Report no.: 
Upjohn Institute Working Paper No. 03-93
Abstract: 
We examine the impact of ownership concentration on firm performance using panel data for firms listed on the Budapest Stock Exchange, where ownership tends to be highly concentrated and frequently involves multiple blocks. Fixed-effects estimates imply that the l largest block increases return on assets and operating efficiency strongly and monotonically, but the effects of total blockholdings are much smaller and statistically insignificant. Controlling for the size of the largest block, point estimates of the marginal effects of additional blocks are negative. The results suggest that the marginal costs of concentration may outweigh the benefits when the increased concentration involves "too many cooks."
Subjects: 
Budapest
stock
exchange
ownership
concentration
Earle
JEL: 
G32
G34
Persistent Identifier of the first edition: 
Additional Information: 
A revised version of this paper appears in Corporate Governance, 13(2), 1-11, March 2005.
Document Type: 
Working Paper

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