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Is there tunneling in Small Business Groups? Evidence from French SMEs

  • Anaïs Hamelin-Schertzer

This paper investigates the influence of firm control structure on firm individual economic performance using a unique firm level data set of ownership and balance sheet information. This study fills a gap in the empirical governance literature by investigating whether or not there is expropriation of minority shareholders in small business groups. Contrary to what is usually observed for large business groups’ results show a positive relationship between the separation of control from ownership and firm performance. Results also underline that tunneling, in small business groups, seems motivated by controlling shareholders’ profit stability rather than profit maximization.

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File URL: https://dipot.ulb.ac.be/dspace/bitstream/2013/54390/1/RePEc_sol_wpaper_10-003.pdf
File Function: RePEc_sol_wpaper_10-003
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Paper provided by ULB -- Universite Libre de Bruxelles in its series Working Papers CEB with number 10-003.RS.

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Length: 55 p.
Date of creation: 2010
Date of revision:
Publication status: Published by:
Handle: RePEc:sol:wpaper:10-003
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