To read this content please select one of the options below:

(excl. tax) 30 days to view and download

The Effects of Ownership Structure on Value Added‐Based Performance

Managerial Finance

ISSN: 0307-4358

Article publication date: 1 September 1994

192

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

Related articles