Advanced Search
MyIDEAS: Login to save this paper or follow this series

Corporate Ownership Structure and Firm Performance: Evidence from Greek Firms

Contents:

Author Info

  • Panayotis Kapopoulos

    (Emporiki Bank)

  • Sophia Lazaretou

    ()
    (Bank of Greece, Economic Research Department)

Abstract

The Berle-Means thesis (1932) implies that diffuse ownership adversely affects firm performance. This paper tries to investigate whether there is strong evidence to support the notion that variations across firms in observed ownership structures result in systematic variations in observed firm performance. We test this hypothesis by assessing the impact of the structure of ownership on corporate performance, measured by profitability, using data for 175 Greek listed firms. Following Demsetz and Villalonga (2001) we model ownership structure, first, as an endogenous variable and, second, we consider two different measures of ownership structure reflecting different groups of shareholders with conflicting interests. Empirical findings suggest that a more concentrated ownership structure positively relates to higher firm profitability. We also find that higher firm profitability requires a less diffused ownership.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.bankofgreece.gr/BogEkdoseis/Paper200637.pdf
File Function: Full Text
Download Restriction: no

Bibliographic Info

Paper provided by Bank of Greece in its series Working Papers with number 37.

as in new window
Length: 33 pages
Date of creation: Apr 2006
Date of revision:
Handle: RePEc:bog:wpaper:37

Contact details of provider:
Web page: http://www.bankofgreece.gr
More information through EDIRC

Related research

Keywords: Money demand; Ownership structure; Firm performance;

Other versions of this item:

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Rafael La Porta & Florencio Lopez-de-Silanes & Andrei Shleifer, 1998. "Corporate Ownership Around the World," Harvard Institute of Economic Research Working Papers 1840, Harvard - Institute of Economic Research.
  2. Short, Helen & Keasey, Kevin, 1999. "Managerial ownership and the performance of firms: Evidence from the UK," Journal of Corporate Finance, Elsevier, Elsevier, vol. 5(1), pages 79-101, March.
  3. Dickerson, Andrew P. & Gibson, Heather D. & Tsakalotos, Euclid, 2002. "Takeover risk and the market for corporate control: the experience of British firms in the 1970s and 1980s," International Journal of Industrial Organization, Elsevier, Elsevier, vol. 20(8), pages 1167-1195, October.
  4. J. A. Hausman, 1976. "Specification Tests in Econometrics," Working papers 185, Massachusetts Institute of Technology (MIT), Department of Economics.
  5. Morck, Randall & Shleifer, Andrei & Vishny, Robert W., 1988. "Management ownership and market valuation : An empirical analysis," Journal of Financial Economics, Elsevier, Elsevier, vol. 20(1-2), pages 293-315, January.
  6. Chung, Kee H. & Pruitt, Stephen W., 1996. "Executive ownership, corporate value, and executive compensation: A unifying framework," Journal of Banking & Finance, Elsevier, Elsevier, vol. 20(7), pages 1135-1159, August.
  7. Demsetz, Harold & Lehn, Kenneth, 1985. "The Structure of Corporate Ownership: Causes and Consequences," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 93(6), pages 1155-77, December.
  8. Charles P. Himmelberg & R. Glenn Hubbard & Darius Palia, 2000. "Understanding the Determinants of Managerial Ownership and the Link Between Ownership and Performance," NBER Working Papers 7209, National Bureau of Economic Research, Inc.
  9. Demsetz, Harold, 1983. "The Structure of Ownership and the Theory of the Firm," Journal of Law and Economics, University of Chicago Press, University of Chicago Press, vol. 26(2), pages 375-90, June.
  10. Palia, Darius & Lichtenberg, Frank, 1999. "Managerial ownership and firm performance: A re-examination using productivity measurement," Journal of Corporate Finance, Elsevier, Elsevier, vol. 5(4), pages 323-339, December.
  11. Loderer, Claudio & Martin, Kenneth, 1997. "Executive stock ownership and performance Tracking faint traces," Journal of Financial Economics, Elsevier, Elsevier, vol. 45(2), pages 223-255, August.
  12. Demsetz, Harold & Villalonga, Belen, 2001. "Ownership structure and corporate performance," Journal of Corporate Finance, Elsevier, Elsevier, vol. 7(3), pages 209-233, September.
  13. G.A. Karathanassis & A.A. Drakos, 2004. "A note on equity ownership and corporate value in Greece," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 25(8), pages 537-547.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Omar Al Farooque & Tony van Zijl & Keitha Dunstan & Akm Waresul Karim, 2010. "Co-deterministic relationship between ownership concentration and corporate performance: Evidence from an emerging economy," Accounting Research Journal, Emerald Group Publishing, vol. 23(2), pages 172-189, September.
  2. Maria-Eleni K. Agoraki & Manthos D. Delis & Panagiotis K. Staikouras, 2010. "The effect of board size and composition on bank efficiency," International Journal of Banking, Accounting and Finance, Inderscience Enterprises Ltd, vol. 2(4), pages 357-386.
  3. Hans Genberg, 2006. "Exchange-Rate Arrangements an Financial Integration in East Asia: On a Collision Course?," Working Papers, Oesterreichische Nationalbank (Austrian Central Bank) 122, Oesterreichische Nationalbank (Austrian Central Bank).
  4. John Williamson, 2006. "A Worldwide System of Reference Rates," Working Papers, Oesterreichische Nationalbank (Austrian Central Bank) 130, Oesterreichische Nationalbank (Austrian Central Bank).
  5. Alexandros E. Milionis, 2006. "An Alternative Definition of Market Efficiency and some Comments on its Empirical Testing," Working Papers, Bank of Greece 50, Bank of Greece.
  6. Pallis, Athanasios A. & Syriopoulos, Theodore, 2007. "Port governance models: Financial evaluation of Greek port restructuring," Transport Policy, Elsevier, vol. 14(3), pages 232-246, May.
  7. Otmar Issing, 2006. "Europe's Hard Fix: The Euro Area," Working Papers, Bank of Greece 39, Bank of Greece.
  8. Ntim, Collins G, 2012. "Director Shareownership and Corporate Performance in South Africa," MPRA Paper 45808, University Library of Munich, Germany.
  9. Panayotis Kapopoulos & Sophia Lazaretou, 2005. "Does Corporate Ownership Structure Matter for Economic Growth? A Cross-Country Analysis," Working Papers, Bank of Greece 21, Bank of Greece.
  10. Krishna Reddy & Stuart Locke & Frank Scrimgeour, 2010. "The efficacy of principle-based corporate governance practices and firm financial performance: An empirical investigation," International Journal of Managerial Finance, Emerald Group Publishing, Emerald Group Publishing, vol. 6(3), pages 190-219, July.
  11. Drakos, A.A. & Bekiris, F.V., 2010. "Corporate performance, managerial ownership and endogeneity: A simultaneous equations analysis for the Athens stock exchange," Research in International Business and Finance, Elsevier, Elsevier, vol. 24(1), pages 24-38, January.
  12. Ioannis Asimakopoulos & Dionysis Lalountas & Costas Siriopoulos, 2008. "The determinants for the survival of firms in the Athens Exchange," Economic Bulletin, Bank of Greece, Economic Research Department, Bank of Greece, Economic Research Department, issue 31, pages 07-30, November.
  13. Tariq, Yasir Bin & Abbas, Zaheer, 2013. "Compliance and multidimensional firm performance: Evaluating the efficacy of rule-based code of corporate governance," Economic Modelling, Elsevier, Elsevier, vol. 35(C), pages 565-575.
  14. Harilaos Mertzanis, 2011. "The effectiveness of corporate governance policy in Greece," Journal of Financial Regulation and Compliance, Emerald Group Publishing, Emerald Group Publishing, vol. 19(3), pages 222-243, July.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:bog:wpaper:37. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Christina Tsochatzi).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.