The Integration of Enterprise Groups into the German Business Register 19th International Roundtable on Business Survey Frames 16 - 21 October 2005, Cardiff (UK) Session 4 – Enterprise Group Recording and Measurement Dr. Gyde Neumann

Agenda Empirical relevance of enterprise groups in Germany Preliminary studies on possible data sources on enterprise groups Description of the acquired private data Status quo and preview

Empirical relevance of enterprise groups in Germany – Data base Reporting year 2001 Sectors: C (Mining and quarrying) and D (Manufacturing) of NACE rev.1 40,000 enterprises (legal units) with 20 and more employees Data source: Merged file of 1. Data from the German Monopolies Commission with information of group membership of enterprises, purchased from private data providers (Verband der Vereine Creditreform e.V. and Hoppenstedt Holding GmbH) and 2. Survey data of sections C and D of NACE rev. 1

Empirical relevance of enterprise groups in Germany – Empirical evidence 1) 1) Enterprises in sections C and D of NACE rev. 1 with 20 and more employees

Empirical relevance of enterprise groups in Germany – Generation of enterprise groups Data base 1: Aggregation of enterprises by group membership Data base 2: Allocation by industries on the 2-digit level of NACE rev.1 and aggregation of enterprises by group membership for concentration analysis GH E2 E3 E4 Industry 11 Industry 12 Industry 13 E1

Empirical relevance of enterprise groups in Germany - Concentration measures Number of enterprises (N) Herfindahl-Index (HHI)  HHI  1 Variation Coefficient (V) Concentration Ratios (CRx)

Enterprises (legal units) Empirical relevance of enterprise groups in Germany – Comparison of concentration measures 1) Aggregation of enterprises by group membership 2) Mean value of results for 2-digit level of NACE rev. 1 (data base 2) Concentration Measure Enterprises (legal units) Economic units 1) Rate of change (%) N (total) 38198 33184 -13.1 HHI (total) 5.1 6.9 35.0 V (total) 1393.5 1442.0 3.5 CR3 (mean value)2) 27.6 31.5 14.1 CR100 (mean value)2) 67.5 72.9 8.0

Preliminary studies on possible data sources on enterprise groups - Requirements on data sources Completeness in control links Coverage of data on group membership of German enterprises Best possible unbiased Majority shares, minority shares, other forms of control Links to international owners Matching possibilities to the Business Register Unique identification variable Name and address Timeliness of the business register end of the reporting year 2003

Preliminary studies on possible data sources on enterprise groups - Administrative Data Value added tax (VAT) groups in the Business Register: No hierarchic structure in VAT groups Two or more VAT groups can be in one enterprise group VAT groups are purely national No private person as group head in VAT groups Empirical evidence: App. 50% degree of coverage, biased

Preliminary studies on possible data sources on enterprise groups - Private Data Bonnier AB (Dun & Bradstreet GmbH, Hoppenstedt Holding GmbH) Bureau van Dijk electronic publishing GmbH (BvD) Verband der Vereine Creditreform e.V. (VVC) Provider Enter-prises Majority shares Minority shares Other forms of control National owners Inter- national owners Number of records (in 1000) Bonnier AB 400 375 25 35 265 18 BvD 889 758 82 1130 183 VVC 1197 950 85 1700 100

The acquired data of BvD National (German) database MARKUS expanded by international shareholders Implementation of the concept of control and timeliness Form of delivery Master file ID BvD name address trade register number legal form industry code country code date of formation kind of unit ID Grouphead Ownership file ID BvD controlled unit ID BvD owner kind of control capital share (%) data source ID BvD owner (minority control) ID Grouphead date of validity

Status quo and preview Data delivery Plausibility checks Matching Further data processing