Does the Governed Corporation Perform Better? Governance Structures and Corporate Performance in Germany

摘要: Although there has been an intensive debate on the relative merits of different sys- tems corporate governance, empirical evidence link between governance and firm performance almost exclusively refers to market-oriented Anglo-Saxon system. This paper therefore investigates more network- or bank-oriented German In panel regressions for 361 corporations over time period 1991 1996, we find ownership concentration affect profitability significantly negatively. However, this effect depends intricately stock market exposure, location control rights, horizon (short-run vs. long-run). We conclude from our results that (1) presence large shareholders does not necessarily enhance profitability, (2) seems be sub-optimal many corporations, and, finally, (3) having financial institutions as largest traded improves performance.