Common Ownership and Portfolio Performance of Firms with Market Power

Category: Finance Seminar
When: 03 Dezember 2019
, 12:00
 - 13:15
Where: House of Finance, room Deutsche Bank (E.01)


While common ownership tends to reduce the intensity of competition in product markets, it also affects idiosyncratic and aggregate market risk. This paper shows that depending on the nature of competition and the nature of uncertainty common ownership may enhance or reduce riskadjusted portfolio returns in equilibrium.