Small business groups enhance performance and promote stability, not expropriation. Evidence from French SMEs

Anaïs Hamelin

Working Papers of LaRGE Research Center from Laboratoire de Recherche en Gestion et Economie (LaRGE), Université de Strasbourg

Abstract: This paper investigates the influence of a firm’s distance from control on its performance, using a unique firm level data set on small business ownership, as well as balance sheet information. This study fills a gap in the empirical governance literature by investigating whether or not there is an expropriation of minority shareholders in small business groups. Contrary to what is usually observed for large business groups, results show a positive relationship between the separation of control from ownership and firm performance. Results also underline that tunneling is used to promote controlling shareholders’ profit stability rather than profit maximization in small business groups.

Keywords: Ownership; Control; Tunneling; Small Business; Performance. (search for similar items in EconPapers)
JEL-codes: G32 G34 (search for similar items in EconPapers)
Date: 2010
New Economics Papers: this item is included in nep-ent and nep-eur
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http://ifs.u-strasbg.fr/large/publications/2010/2010-04.pdf (application/pdf)

Related works:
Journal Article: Small business groups enhance performance and promote stability, not expropriation. Evidence from French SMEs (2011)
Working Paper: Small business groups enhance performance and promote stability, not expropriation. Evidence from French SMEs (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:lar:wpaper:2010-04

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