THE IMPACT OF OWNERSHIP AND CAPITAL STRUCTURE ON MANAGERIAL MOTIVATION AND STRATEGY IN MANAGEMENT BUY‐OUTS: A CULTURAL ANALYSIS

Sebastian Green

Journal of Management Studies, 1992, vol. 29, issue 4, 513-535

Abstract: This study examines, from a cultural perspective, owner‐managers’and other stakeholders’interpretations of the partial fusion of ownership and control through high leverage in eight UK management buy‐outs (MBOs). Owner‐control and debt‐control are interpreted as having positive effects on managerial motivation, organizational decision‐making processes and implementation of cost reduction strategies and negative ones on fundamental changes in strategy and acquisition. These interpretations accord broadly with agency theory propositions but show that owner‐managers place less emphasis on wealth incentive effects and more emphasis on the enabling and facilitating roles of collective ownership and the freedom it gives from inappropriate corporate control.

Date: 1992
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https://doi.org/10.1111/j.1467-6486.1992.tb00676.x

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Persistent link: https://EconPapers.repec.org/RePEc:bla:jomstd:v:29:y:1992:i:4:p:513-535

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