Graduate School of Social Sciences

Big shift in corporate ownership

3 November 2016

Political scientists at the University of Amsterdam reveal a big change on the financial market. Through the analysis of business networks they make visible the massive growth of passive investments and the domination of three big passive investors: Black Rock, State Street and Vanguard. These passive investors are the new owners of big business.

With the financial crisis of 2008 everything changed. When the financial market crashed, investors fundamentally changed the way they buy stocks. Before, they invested in actively managed funds, but after the crisis passively managed funds grew rapidly.

In the USA, the three biggest passive investors already constitute the single largest shareholder in forty percent of all listed firms. What are the consequences of this shift in corporate ownership? This question is central to the political scientists who are united in the Corpnet research team.

The team made an animation movie on this big shift in corporate ownership in cooperation with Public Cinema.

Published by  AISSR