Ownership concentration among entrepreneurial firms: The growth-control trade-off

Shaojie Lai, Hongyan Liang, Zilong Liu, Xiaoling Pu, Jianing Zhang

Research output: Contribution to journalArticlepeer-review


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.

Original languageEnglish (US)
Pages (from-to)122-140
Number of pages19
JournalInternational Review of Economics and Finance
StatePublished - Mar 2022
Externally publishedYes


  • Changes in ownership concentration
  • Growth-control trade-off
  • Ownership concentration
  • Ownership-performance relation
  • Propensity score matching

ASJC Scopus subject areas

  • Finance
  • Economics and Econometrics


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