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

2. 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

3. 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

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

5. 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

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

7. Enterprises (legal units)
Empirical relevance of enterprise groups in Germany – Comparison of concentration measures ) 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

8. 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

9. 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

10. 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

11. 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

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