Cross ownership 5420 219810971 2008-06-16T23:48:46Z SieBot 4005189 robot Modifying: [[ja:株式持ち合い]] '''Cross ownership''' is a method of reinforcing business relationships by owning stock in the companies with which a given company does business. In the US, it also refers to a type of investment in different mass-media properties in one market. ==Cross ownership of stock== Some countries where cross ownership of shares is a major part of the business culture are: * [[Japan]] * [[Germany]] Positives of cross ownership: * Closely ties each business to the economic destiny of its business partners * Promotes a slow rate of economic change Cross ownership of shares is criticized for: * Stagnating the economy * Wasting capital that could be used to improve productivity * Expanding economic downturns by preventing reallocation of capital A major factor in perpetuating cross ownership of shares is a high [[capital gains]] tax rate. A company has less incentive to sell cross owned shares if taxes are high because of the immediate reduction in the value of the assets. For example, a company owns $1000 of stock in another company that was originally purchased for $200. If the capital gains tax rate is 50% (like Germany) and the company sells the stock, the company has $600 which is 40 percent less than before it sold the stock. Long term cross ownership of shares combined with a high capital tax rate greatly increases periods of asset deflation both in time and in severity. ==Media Cross Ownership== Cross ownership also refers to a type of media ownership in which one type of communications (say a newspaper) owns or is the sister company of another type of medium (such as a radio or TV station). One example is ''[[The New York Times]]'' 's ownership of [[WQXR]] Radio and the ''[[Chicago Tribune]]'''s similar relationship with [[WGN]] Radio and Television. The [[Federal Communications Commission]] generally does not allow cross ownership, to keep from one license holder having too much local media ownership, unless the license holder obtains a waiver, such as [[News Corporation]] and the [[Tribune Company]] have in New York. The mid-1970s cross-ownership guidelines grandfathered already-existing crossownerships, such as ''Tribune''-WGN, ''New York Times''-WQXR and the ''[[New York Daily News]]'' ownership of [[WPIX]] Television and Radio. [[Category:Management]][[category:Strategic management]] [[he:בעלות צולבת]] [[ja:株式持ち合い]]