Managerial ownership and firm performance in German small and medium-sized enterprises
Elisabeth Mueller () and
No 01-72, ZEW Discussion Papers from ZEW - Leibniz Centre for European Economic Research
We analyze 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 up to around 40 percent. 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)
JEL-codes: G32 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed
Downloads: (external link)
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 (2002)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:zbw:zewdip:5428
Access Statistics for this paper
More papers in ZEW Discussion Papers from ZEW - Leibniz Centre for European Economic Research Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().