Written by Marc Oliveras

Article 2, Volume 1 Issue 2:

Corporate governance and performance during plummeting and soaring financial markets

Kurt A. Desender and Mónica Lopez Puertas-Lamy

DOI: 10.26595/eamr.2014.1.2.2


The objective of this study is to investigate the relationship between stock market performance and ownership structure during plummeting and soaring financial markets in a Continental-European setting. Our results demonstrate the importance of ownership concentration, the presence of multiple blockholders and the type of ownership to explain stock market performance in periods of stock market turbulence. In addition, we find that the results for extreme down markets are fundamentally different from the up-market results. While ownership concentration is valued positively during down market periods, it is valued negatively during up market periods. Furthermore, the presence of multiple blockholders only influences the stock price during down market periods. Finally, firms controlled by financial institutions lose less value during down markets, while firms controlled by non-founding families lose more value, compared to widely held firms, during down market periods. No significant relationship is found during up market periods.


  • Ownership concentration
  • Stock price performance
  • Multiple blockholders
  • Type of ownership

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