Types Of Ownership Structures Research Articles

Effects of Foreign Ownership on Media Content: Thomson Papers' Coverage of Quebec Independence Vote

Critics and scholars have long worried about the power that media owners have to shape the content and ideas that reach the public. In the past four decades, as concentration of media ownership has increased, considerable effort has been focused on studying the impact of ownership structures on the quality, nature and diversity of media content. In the late 1980s, the aggressive expansion of media corporations into overseas markets began raising questions about the impact foreign ownership may have on the content and performance of domestic media.(1) Concern about foreign ownership of media is not new. Since the early part of this century, most nations have specifically prohibited or strictly limited the foreign ownership of core domestic media and communication companies at least partly out of fear that foreign owners would use those outlets to manipulate public opinion in times of national crisis. As a result of such restrictions, transnational media ownership was not widespread outside of the consumer magazine industry prior to the late 1980s. Not surprisingly, then, research on the international aspects of media performance has been focused largely on the effects imported media may have on domestic audiences, and on issues of international coverage, news flow and framing. Little attention has been paid to the effects foreign ownership may have on media content. After the fall of the Eastern Bloc, the ownership of large segments of Eastern Europe's print media passed into the hands of foreign, largely Western companies.(2) Simultaneously, the move towards privatization and liberalization of communication industries throughout the industrialized world opened the doors to greater international ownership of media companies. Contributing to the rapid transnationalization of media companies since the late 1980s has been the global push for free trade in international markets. Industrialized nations, in particular, have recognized that information is a valuable trade good in world markets and,(3) as a result, media and cultural industries are increasingly being included in free trade agreements. The European Union has worked to reduce national barriers to transnational media ownership and investment, while both the Canadian Free Trade Agreement and the North American Free Trade Agreement include specific provisions designed to pressure Canada and Mexico to open their cultural industries to American investment.(4) Simultaneous with this increased emphasis on free trade has been the development of technologies that facilitate the management of global media operations, such as high-speed computer networks and satellite communications. Additionally, the movement by some media companies to take advantage of these new opportunities by transnationalizing has pressured others in the industry to do the same in order to avoid being placed a competitive disadvantage. These factors suggest that the transnationalization of media will continue in the foreseeable future and lend some impetus to studying the question of the impact of foreign ownership on media content. Literature review Although there is little published research that directly addresses the question of the impact of foreign ownership on media content, and particularly print media content, there has been considerable examination of the effects of other types of ownership structures on newspaper content. Media scholars have long been concerned about the rapid consolidation of media ownership that has taken place over the past few decades, with critics arguing that control of large numbers of media outlets allows a handful of corporate owners to obtain dominant influence over public opinion.(5) This concern is, of course, based on the assumptions that owners influence media content and that chain ownership will tend to homogenize the content of the multiple media outlets held by the chain, leading to a reduction of the vigor and diversity of the editorial content and opinion available to the public. …

Market Valuation and Equity Ownership Structure: The Case of Agency Conflict Regimes

This paper provides further evidence on the link between the firm's performance and the distribution of the common shares between insiders, blockholders and institutions. We endogenize the functional form of the market valuecommon equity structure relationship by using a switching regression methodology. This allows us to observe four distinct ownership structure types that constitute different agency conflict regimes. We provide evidence that supports the notion that investors recognize the existence of such regimes and assess market values differently depending on the type of agency regime the firm operates in. We find that firms with low insider stakes and low blockholder stakes and firms with high insider stakes and high blockholder stakes have the highest agency costs of free cash flow. We also find that the effect of the ownership variables on market values differs across regimes and that there are differences in the monitoring effectiveness of institutional holders and blockholders.

Hospital Ownership and Technical Inefficiency

The theoretical industrial organization literature cites varying factors which might influence the degree of technical efficiency achieved under different ownership structures in the US hospital industry. Unfortunately, this literature offers no consensus regarding the net direction and magnitude of these various effects. This study analyzes the four types of ownership structure in the US hospital industry—private nonprofit, private for-profit, federal, and state and local government. Distance functions are used to measure technical efficiency of hospitals producing multiple outputs relative to other hospitals in the sample, allowing comparisons among the different ownership types.

Determinants of Executive Tenure in Large US Firms

This study examined the relationship between executive tenure and selected company characteristics for 196 US corporations. Tenure was found to be negatively related to both unrelated and related diversification strategies, and positively related to firm performance and both types of ownership structure: stock concentration and management stockholdings.

Stock Versus Mutual Ownership Structures: The Risk Implications

This article provides empirical tests of the risk differences between two types of ownership structure in the property-liability insurance industry. Empirical evidence is provided that suggests stock insurers have more risk than mutuals where the risk inherent in future cash flows is proxied by the variance of the loss ratio. Further evidence suggests that stock insurers write relatively more business than do mutuals in lines and states having higher risk. Copyright 1993 by University of Chicago Press.