The Effects of Ownership Structure on Value Added‐Based Performance
Abstract
Following the recognition of the separation of ownership and control in the large firm espoused by Berle and Means (1932), a debate ensued on the possible effect of such separation on the value/or performance of the large firm. This controversy was evidenced in both theoretical and empirical studies on the relation between the allocation of shares among managers and non‐managers, and corporate value/or performance (Jensen and Meckling, 1976; Stulz, 1988; Morck, Schleifer and Vishny, 1988; Demsetz and Lehn, 1985; Holderness and Sheehan, 1985; Hermalin and Weisbad, 1987; and Riahi‐Belkaoui and Pavlik, 1992). Empirical studies focused specifically on the relationship between Tobin Q or accounting‐based profit measures of performance, and equity ownership, yielding mixed results.
Citation
Pavlik, E. and Riahi‐Belkaoui, A. (1994), "The Effects of Ownership Structure on Value Added‐Based Performance", Managerial Finance, Vol. 20 No. 9, pp. 16-26. https://doi.org/10.1108/eb018489
Publisher
:MCB UP Ltd
Copyright © 1994, MCB UP Limited