Does Common Ownership Influence the Financial Strategy of the French Pharmaceutical Firms?

Antonio Estache and Christophe Kieffer

No 2021-09, Working Papers ECARES from ULB -- Universite Libre de Bruxelles

Abstract: This paper provides evidence on the growing degree of common ownership in the French pharmaceutical industry, on the associated anticompetitive risks and on the substantial differences across product markets within the industry. The assessment relies on the traditional Herfindahl-Hirschman Index, its modified version adopted by the common ownership literature and a new simpler alternative. These measures are then correlated with financial performance indicators collected at firm level. We find a positive and statistically significant relationship of concentration due to common ownership with the return on equity and the leverage level for some products.

Keywords: Antitrust; Common Ownership; France; Index funds; Institutional Investors; Financial strategy; Market Power; Pharmaceuticals; Regulation; Shareholding (search for similar items in EconPapers)
Pages: 24 p.
Date: 2021-04
New Economics Papers: this item is included in nep-bec, nep-cfn and nep-com
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