The effect of management practice on performance: The moderating role of ownership

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Abstact

While scholars agree that ownership matters for firm performance in general, the detailed effects are still debated. We argue that ownership impacts firm performance not only directly but also through implementing different levels of management practice that impact firm performance too. We show that interactions between ownership and management practice have positive and negative effects on firm performance depending on how different owners can exploit the benefits of management practices or not. In that sense, ownership moderates the effect of management practices on performance.

Keywords: Performance, Ownership Structure, Panel Data, World Management Survey

JEL Classification: D22, M21

Received: 27.10.2021
Accepted: 02.11.2021

How to cite: Rieg, R., & Ulrich, P. (2021). The effect of management practice on performance: The moderating role of ownership. In K. M. Hogan, & A. Kostyuk (Eds.), Corporate governance: Fundamental and challenging issues in scholarly research (pp. 78–84). https://doi.org/10.22495/cgfcisrp12