Increasing ownership dispersion in the German system of governance and finance: The role of German MNCs
Type
conference paper
Date Issued
2005-05-04
Author(s)
Abstract (De)
The German system of corporate governance and finance has recently been undergoing a shift away from formerly "patient capital" in terms of large blockholdings towards more stock market-driven relationships between shareholders, i.e. higher levels of ownership dispersion. Drawing on institutional theory, this paper examines a
sample of 75 of the largest German multinational corporation (MNCs) for the year 2000 and shows that ownership dispersion in a company?s voting rights increases with both the need to finance internationalisation strategies as well as the increase in institutional pressures that arise from the internationalisation process of German MNCs. Positive relationships between firm internationalisation, the internationalisation of management and supervisory boards and the level of ownership dispersion are found. The findings are consistent with institutional theory?s assertion of the firm?s embeddedness in institutional contexts and their influence on organisational characteristics and contribute to the understanding of the determinants of corporate ownership structures.
sample of 75 of the largest German multinational corporation (MNCs) for the year 2000 and shows that ownership dispersion in a company?s voting rights increases with both the need to finance internationalisation strategies as well as the increase in institutional pressures that arise from the internationalisation process of German MNCs. Positive relationships between firm internationalisation, the internationalisation of management and supervisory boards and the level of ownership dispersion are found. The findings are consistent with institutional theory?s assertion of the firm?s embeddedness in institutional contexts and their influence on organisational characteristics and contribute to the understanding of the determinants of corporate ownership structures.
Language
German
Keywords
Governing international and multinational corporations
International
corporate governance
corporate governance
Ownership dispersion
Top management teams and boards
HSG Classification
contribution to scientific community
Refereed
Yes
Event Title
5th European Academy of Management Conference (EURAM) 2005
Event Location
Munich
Event Date
04.-07.05.2005
Subject(s)
Eprints ID
8915