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Does the New Economy Need New Governance? Ownership, Knowledge and Performance

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  • Audretsch, David B
  • Lehmann, Erik

Abstract

We study the implications of ownership and its induced incentives on firm performance in the ‘New Economy’. Instead of traditional performance we use firm survival on the stock market as the performance indicator. Using a unique data set of all 341 firms listed on the Neuer Markt, the German counterpart of the NASDAQ, our results differ from studies on more traditional firms. Ownership by CEOs has no influence on firm survival when introducing measurements of human capital and intellectual property rights. This confirms assumptions that firms in the ‘New Economy’ differ also in their governance structure from traditional firms.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 3626.

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Date of creation: Nov 2002
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Handle: RePEc:cpr:ceprdp:3626

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Keywords: corporate governance; entrepreneurship; firm survival; new economy;

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Cited by:
  1. Irena Grosfeld, 2009. "Large shareholders and firm value: Are high-tech firms different?," PSE Working Papers halshs-00587856, HAL.
  2. Irena Grosfeld, 2006. "Ownership concentration & firm performance: Evidence from an emerging market," William Davidson Institute Working Papers Series wp834, William Davidson Institute at the University of Michigan.
  3. Audretsch, David B & Lehmann, Erik E & Warning, Susanne, 2003. "University Spillovers: Strategic Location and New Firm Performance," CEPR Discussion Papers 3837, C.E.P.R. Discussion Papers.
  4. Tykvova, Tereza & Walz, Uwe, 2007. "How important is participation of different venture capitalists in German IPOs?," Global Finance Journal, Elsevier, vol. 17(3), pages 350-378, 03.
  5. Tykvová, Tereza & Walz, Uwe, 2004. "Are IPOs of different VCs different?," CFS Working Paper Series 2004/02, Center for Financial Studies (CFS).

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