Aminadav, G., & Papaioannou, E. (2020), Corporate control around the world

Question 1

What types of corporate control dominate in civil-law countries?

Answer 1

Government and family control are prevalent in civil-law countries.

Question 2

Which countries have the highest proportion of widely held firms?

Answer 2

Common-law countries (e.g., U.S., U.K.) have the highest share of widely held corporations.

Question 3

Are equity blocks common in publicly listed firms?

Answer 3

Yes, over 80% of non-controlled firms have at least one equity block, meaning someone owns more than 5% of the voting rights

Question 4

What institutional factor is most strongly linked to dispersed ownership?

Answer 4

Strong shareholder protection rights are associated with dispersed ownership structures.

Question 5

How does firm size affect the link between corporate control and development?

Answer 5

Dispersed ownership is positively correlated with GDP per capita — but only for large firms, not for small or medium-sized firms.

Countries with higher income levels (GDP per capita) generally have more widely held companies — but this pattern is only true for big firms

Question 6

How does the historical development of welfare states relate to corporate control structures?

Answer 6

Countries with strong welfare states often developed family-controlled firms and direct government ownership, due to the co-evolution of labor protection, political institutions, and ownership structures.

Labor rules affect how capital (ownership) is structured — and vice versa. For example, if it’s hard to adjust your workforce, owners may prefer to keep tight control of the company to manage that risk directly.