Equity Ownership and Performance: An Empirical Study of German Traded Companies

Authors: Kerstin Grob
Publisher: Physica Verlag
Edition: 1
Publish Year: 2007
ISBN: 9783790819335

Corporate governance has been at the center of interest in the corporate- nance literature for the past decade. The discussion has continuously int- si?ed due to the occurrence of multiple corporate governance failures which have triggered the introduction or further re?nement of national and inter- tional corporate governance codes. The necessity of regulatory action however rests on the need for a sound understanding of potentially negative e?ects of ownership structure on ?nancial performance. Unfortunately, the empirical literature so far has not delivered consistent evidence leaving the overall e?ects still somewhat in the open. This incons- tency is argued to stem from di?erent biases in the statistical analysis, where the most important ones are the endogeneity and simultaneity bias.