TY - JOUR
T1 - Ownership concentration among entrepreneurial firms
T2 - The growth-control trade-off
AU - Lai, Shaojie
AU - Liang, Hongyan
AU - Liu, Zilong
AU - Pu, Xiaoling
AU - Zhang, Jianing
N1 - Funding Information:
We would like to thank James Ang, Kam Chan, Scott Masten, Min Qi, Lan Shi, Xinlei Zhao and seminar participants at Kent State University for their valuable comments. We are grateful to the Ewing Marion Kauffman Foundation for providing access to the NORC Enclave. The views expressed in this paper are those of the authors and do not necessarily represent the views of the Ewing Marion Kauffman Foundation, the Office of the Comptroller of the Currency, or the U.S. Department of Treasury. Shaojie Lai acknowledge financial support from the Ministry of Education in China (Project No. 21YJC790167) and the Humanities and Social Science Project in Jiangxi Province of China (Project No. JD19029). Jianing Zhang acknowledges the financial support from the National Natural Science Foundation of China (Project No. 71772111). The authorship follows alphabetical order and the authors are responsible for all errors.
Funding Information:
We would like to thank James Ang, Kam Chan, Scott Masten, Min Qi, Lan Shi, Xinlei Zhao and seminar participants at Kent State University for their valuable comments. We are grateful to the Ewing Marion Kauffman Foundation for providing access to the NORC Enclave. The views expressed in this paper are those of the authors and do not necessarily represent the views of the Ewing Marion Kauffman Foundation, the Office of the Comptroller of the Currency, or the U.S. Department of Treasury. Shaojie Lai acknowledge financial support from the Ministry of Education in China (Project No. 21YJC790167 ) and the Humanities and Social Science Project in Jiangxi Province of China (Project No. JD19029 ). Jianing Zhang acknowledges the financial support from the National Natural Science Foundation of China (Project No. 71772111 ). The authorship follows alphabetical order and the authors are responsible for all errors.
Publisher Copyright:
© 2021 Elsevier Inc.
PY - 2022/3
Y1 - 2022/3
N2 - There is much variation in ownership concentration among entrepreneurial firms cross-sectionally and over time. Growth potential, risk-sharing, and demand for external capital seem to be the main reasons behind the choice of low ownership concentration, and firms with diluted ownership show strong growth. After controlling for the firm fixed effects or the sample selection bias, we do not find any evidence suggesting a link between ownership concentration and other dimensions of firm performance. Therefore, the trade-off between growth aspiration and retention of dominant control of the firms may be critical in ownership structure decisions among entrepreneurial firms.
AB - There is much variation in ownership concentration among entrepreneurial firms cross-sectionally and over time. Growth potential, risk-sharing, and demand for external capital seem to be the main reasons behind the choice of low ownership concentration, and firms with diluted ownership show strong growth. After controlling for the firm fixed effects or the sample selection bias, we do not find any evidence suggesting a link between ownership concentration and other dimensions of firm performance. Therefore, the trade-off between growth aspiration and retention of dominant control of the firms may be critical in ownership structure decisions among entrepreneurial firms.
KW - Changes in ownership concentration
KW - Growth-control trade-off
KW - Ownership concentration
KW - Ownership-performance relation
KW - Propensity score matching
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U2 - 10.1016/j.iref.2021.11.005
DO - 10.1016/j.iref.2021.11.005
M3 - Article
AN - SCOPUS:85120324298
SN - 1059-0560
VL - 78
SP - 122
EP - 140
JO - International Review of Economics and Finance
JF - International Review of Economics and Finance
ER -