OWNERSHIP STRUCTURE AND PERFORMANCE: A COMPARISON OF DIFFERENT CORPORATE GOVERNANCE SYSTEMS

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Alberto de Miguel Hidalgo ORCID logo, Julio Pindado ORCID logo, Chabela de la Torre

DOI:10.22495/cocv2i4p7

Abstract

This paper analyses how the main institutional factors characterizing corporate governance systems around the world affect the relationship between ownership structure and firm performance. Our analysis gives rise to the following remarks. First, ownership concentration and insider ownership levels are determined by several institutional features such as investor protection, development of capital markets, activity of the market for corporate control, and effectiveness of boards. Second, the relationship between ownership concentration and performance is not directly affected by these institutional factors. Third, there is, however, a direct influence of corporate governance characteristics on the relationship between insider ownership and performance.

Keywords: Ownership Concentration, Insider Ownership, Corporate Governance Systems, Firm Performance

How to cite this paper: de Miguel, A., Pindado, J., & de la Torre, C. (2005). Ownership structure and performance: A comparison of different corporate governance systems. Corporate Ownership & Control, 2(4), 76-85. http://doi.org/10.22495/cocv2i4p7