Diversified shareholders help firms withstand economic shocks, study finds - Cyprus Mail

Euro area companies with more geographically diversified shareholders cut investment less sharply during the Covid-19 crisis than businesses whose investors were concentrated in their home country, according to a European Central Bank (ECB) working paper. The research found that, among companies hardest hit by the pandemic, those with less concentrated domestic ownership reduced investment by around 20 per cent less after the crisis struck, highlighting how international shareholders can help businesses withstand major economic shocks.