High ownership concentration stifles innovation in high-tech firms, study finds.
Ownership concentration in companies can impact their performance. High ownership concentration can limit managerial creativity, especially in firms focused on knowledge-related activities. A study on firms in an emerging market found that ownership becomes more dispersed over time. Companies in high-tech sectors tend to have lower ownership concentration. The study shows that higher ownership concentration can increase a firm's value, especially when considering the specific characteristics of the firm.