Managerial ownership and firm performance in German small and medium-sized enterprises

Arbeitspapier

We analyze the relationship between managerial ownership and company performance, testing the incentive and entrenchment hypothesis. Differently from previous literature, we focus on small and medium-sized private enterprises which constitute an important part of the German economy. We use a panel of 356 companies in the German business-related service sector for the years 1997-2000. Our findings are that performance, measured by survey-based profit information, is increasing in managerial ownership up to around 40 percent. We do not find a significant entrenchment effect, possibly because at levels at which managers could become entrenched, they already bear a large proportion of the costs and have therefore an incentive to maximize company value.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: ZEW Discussion Papers ; No. 01-72

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
• Thema: company performance ; managerial ownership ; corporate governance ; small and medium-sized enterprises ; Eigentümerstruktur ; Corporate Governance ; Führungskräfte ; Klein- und Mittelunternehmen ; Unternehmensentwicklung ; Agency Theory ; Schätzung ; Unternehmensdienstleistung ; Deutschland

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Mueller, Elisabeth ; Spitz, Alexandra
• Ereignis: Veröffentlichung
• (wer): Zentrum für Europäische Wirtschaftsforschung (ZEW)
• (wo): Mannheim
• (wann): 2001

Weitere Informationen

• Handle: http://hdl.handle.net/10419/24493
• Letzte Aktualisierung: 10.03.2025, 11:45 MEZ