The Persistent Ownership Concentration of Private Firms

The Persistent Ownership Concentration of Private Firms

Øyvind Bøhren, Diana Iancu, Georgiana Radulescu, R. Øystein Strøm

Series number :

Serial Number: 

Date posted :

March 26 2020

Last revised :

March 26 2020
SSRN Share


  • ownership • 
  • concentration • 
  • persistence • 
  • dynamics • 
  • Private Firms • 
  • family firms • 
  • system GMM • 
  • register data

We find that ownership changes much less over time in private firms than in public firms. The average largest shareholder in private (public) Norwegian firms keeps the same stake in 82% (14%) of two consecutive years. This evidence suggests that concentrated ownership in private firms offers benefits that are costlyto trade.

Past ownership dominates other ownership determinants proposed in the literature, and the estimates become misleading if the economic model or the econometric technique ignores persistence. These findings mitigate identification concerns by suggesting that observed ownership is a valid exogenous determinant of economic outcomes when the share is illiquid.


Real name:
Diana Iancu
Real name:
Georgiana Radulescu
Real name:
R. Øystein Strøm