August 2024
Technical Note
HBS Case Collection

Measuring Concentrated Ownership

By: Christina R. Wing, Everett Alexander and Justin Huang

Format:Print
| Language:English
| Pages:6

Abstract

Firms with strong governance practices exhibit lower control premiums due to reduced risks and more efficient operations. Conversely, poorly governed firms may exhibit higher control premiums as new owners anticipate the need for substantial governance improvements. This note introduces a governance-centric valuation method that measures controlling shareholders' ownership and voting control.

Keywords

Concentrated Ownership; Ownership; Corporate Governance; Valuation

Citation

Wing, Christina R., Everett Alexander, and Justin Huang. "Measuring Concentrated Ownership." Harvard Business School Technical Note 625-031, August 2024.