Definition: Ownership rates
Business registers
Ownership rates are computed by following chains of ownership, taking into account direct and indirect ownership links, without restriction to the economic territory of any country, as follows:
If enterprise A owns 70 per cent of enterprise B and B owns 60 per cent of enterprise C, then A owns 70% x 60% = 42 percent of C.
If enterprises B1 and B2 own 20 and 35 per cent, respectively, of enterprise C, and if enterprise A, owns 100 per cent of B1 and 80 per cent of B2, then A owns 100% x 20% + 80% x 35% = 48% of enterprise C.
If ownership rates are to reflect the share of dividends of an enterprise accruing to another one, their computation should be based on the total shares owned, as opposed to the voting shares. If they are to reflect the "degree of influence" exercised by an enterprise on another one, voting shares should be used.
Source:
Eurostat, "Business registers. Recommendations manual", Methodologies and Working Papers, Publications Office of the European Union, Luxembourg, 2010
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