18-04-16

Concentrated ownership reduces capital market efficiency

In an efficient economy, capital should be rapidly redistributed - from companies and sectors in decline - to more profitable investment opportunities. In a working paper, cited by the Asian NewsLens, Swedish Entrepreneurship Forum’s Johan Eklund and Sameeksha Desai, Kauffman Foundation, write that a more concentrated ownership reduces capital market efficiency. Economies with highly concentrated ownership structures display economic entrenchment and persistent misallocation of capital.

Read the article in the NewsLens

Download the Working Paper