Does corporate ownership structure matter for economic growth? A cross-country analysis

Panayotis Th. Kapopoulos and Sophia Lazaretou ()

Managerial and Decision Economics, 2009, vol. 30, issue 3, pages 155-172

Abstract: The role of corporations in allocating resources has been of great importance in the debate about the manner in which enterprises should be governed to enhance economic growth. Corporate governance features seem to be central to the dynamics by which successful firms and economies improve their performance over time as well as relative to each other. In this paper we try to clarify the relationship between corporate ownership structure and output growth by using the data of La Porta et al. (J. Finance 1999; LIV: 471-517) on ownership structure of large- and medium-sized corporations in 27 economies. To search for empirical linkages, we use cross-country growth regressions. The evidence provided in the paper suggests that an environment with a higher percentage of directly and indirectly widely held companies and a lower degree of state than private ownership is associated with a higher growth rate of per capita income. We also conclude that a higher degree of institutional investment does not seem to enhance the growth performance of an economy. Copyright © 2008 John Wiley & Sons, Ltd.

Date: 2009
View list of references

Downloads: (external link)
http://hdl.handle.net/10.1002/mde.1442 Link to full text; subscription required (text/html)

Related works:
Working Paper: Does Corporate Ownership Structure Matter for Economic Growth? A Cross-Country Analysis (2005)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:wly:mgtdec:v:30:y:2009:i:3:p:155-172

Access Statistics for this article

Managerial and Decision Economics is edited by Paul H. Rubin

More articles in Managerial and Decision Economics from John Wiley & Sons, Ltd.
Series data maintained by Christopher F. Baum ().