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Ownership structure and firm performance: Some empirical evidence from Spain

✍ Scribed by Carmen Galve Górriz; Vicente Salas Fumás


Publisher
John Wiley and Sons
Year
1996
Tongue
English
Weight
896 KB
Volume
17
Category
Article
ISSN
0143-6570

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✦ Synopsis


The 'managerial' and the 'contractual' theories of the firm imply different causes and consequences for the relationship between ownership and performance of firms. This paper provides a test of the two conflicting theories, using ownership and performance data from a sample of Spanish family-and non-family-controlled firms. We find evidence in support of the contractual theory of the firm, according to which firms choose their ownership structure maximizing economic value, net of contractual costs.