EconPapers    
Economics at your fingertips  
 

Managerial Ownership and Company Performance in German Small and Medium- Sized Private Enterprises

Elisabeth Mueller () and Spitz-Oener Alexandra
Additional contact information
Spitz-Oener Alexandra: Humboldt University,Berlin, Germany

German Economic Review, 2006, vol. 7, issue 2, 233-247

Abstract: We analyse 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 by up to around 40 per cent. 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.

Keywords: Company performance; managerial ownership; corporate governance; small and medium-sized enterprises (search for similar items in EconPapers)
Date: 2006
References: Add references at CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://doi.org/10.1111/j.1468-0475.2006.00154.x (text/html)
For access to full text, subscription to the journal or payment for the individual article is required.

Related works:
Journal Article: Managerial Ownership and Company Performance in German Small and Medium‐Sized Private Enterprises (2006) Downloads
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: https://EconPapers.repec.org/RePEc:bpj:germec:v:7:y:2006:i:2:p:233-247

Ordering information: This journal article can be ordered from
https://www.degruyte ... ger/ger-overview.xml

DOI: 10.1111/j.1468-0475.2006.00154.x

Access Statistics for this article

German Economic Review is currently edited by Peter Egger, Almut Balleer, Jesus Crespo-Cuaresma, Mario Larch, Aderonke Osikominu, Georg Wamser

More articles in German Economic Review from De Gruyter
Bibliographic data for series maintained by Peter Golla ().

 
Page updated 2021-04-03
Handle: RePEc:bpj:germec:v:7:y:2006:i:2:p:233-247