Managerial Ownership and Firm Performance in German Small and Medium-Sized Enterprises
Elisabeth Müller and
Authors registered in the RePEc Author Service: Elisabeth Mueller ()
CEP Discussion Papers from Centre for Economic Performance, LSE
This paper studies the effect of managerial ownership on performance and the determinants of managerial ownership for small and medium-sized private companies. We use a panel of around 1300 firms in the German business-related service sector for the years 1997-2000. Managerial ownership up to around 80 per cent has a positive impact on firm performance (incentive effect); for higher shares the effect becomes negative (entrenchment effect). Moreover, risk-aversion of managers and signalling of firm quality leads to a non-linear relationship between managerial ownership and the risk exposure of a firm. The determinants of performance and ownership are estimated simultaneously.
Keywords: corporate governance; managerial ownership; firm performance; small and medium-sized enterprises (search for similar items in EconPapers)
JEL-codes: G32 C23 (search for similar items in EconPapers)
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Working Paper: Managerial ownership and firm performance in German small and medium-sized enterprises (2002)
Working Paper: Managerial ownership and firm performance in German small and medium-sized enterprises (2001)
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Persistent link: https://EconPapers.repec.org/RePEc:cep:cepdps:dp0528
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