Cross-holdings

Cross-holdings

The holding by one corporation of shares in another firm. One needs to allow for cross-holdings when aggregating capitalizations of firms. Ignoring cross-holdings leads to double-counting.

Cross Holding

The situation in which one publicly-traded company owns stock in another publicly-traded company. This situation can lead to double-counting of securities, especially when the two corporations are listed on the same index. Thus, one needs to account for cross holdings when aggregating the capitalizations of firms. If two firms cross hold each other, it is difficult to displace the management in one without the consent of the other corporation.
References in periodicals archive ?
Japanese management is overly conservative, and outside investors have relatively little influence because (1) corporate stock cross-holdings entrench management, (2) Japanese companies have very low return on equity (ROE), and (3) outside investors value cash (and other assets) on the balance sheet at 50% of face value, which leads to (4) very poor corporate performance and little pressure on management to improve.
A unified Chinese regulator should be in a better position to deal with the increasing complexity of financial activities, particularly the crossover of business between the banking and insurance sectors and cross-holdings of financial products.
Samsung Electronics is the main company in the group, which the founding family controls via complicated cross-holdings despite having negligible stakes in it.
We would like to simplify and remove the entire cross-holdings and the web around and make it simple, clean and straightforward .
Touching on another key issue, Jaitley said there is a need for a debate on the issue of cross-holdings in the media.
The two companies are ending a pact signed in 2005 that saw the financial institutions own cross-holdings of each other's' shares.
The move is the latest promotion in recent years of the three heirs of the founding family, which controls Samsung through a complex web of share cross-holdings in group subsidiaries centred on Everland.
He said these guidelines cover detailed procedures for registration of rating agencies, eligibility norms, terms and conditions of registration, cross-holdings, methodology for audience measurement, a complaint redressal mechanism, sale and use of ratings, audit, disclosure, reporting requirements and action on non-compliance of guidelines.
Vodafone could be forced to sell its stake in India's leading mobile carrier Bharti Airtel after India revised telecom licensing rules, prohibiting cross-holdings in rival telecoms companies.
Solvay has announced that SolVin and Arkema have decided to each buy back the minority cross-holdings in the vinyls production joint ventures that are operated by them.
Unibanco and AIG entered into an agreement to repurchase their cross-holdings in Unibanco AIG.
Noting how these specific drivers can be applied successful in developing countries, this volume describes effective alliances such as licensing, franchising, joint research and development, equity joint ventures and cross-holdings. Recommendations on international business negotiations, contracts and contract drafting are also provided.