Corporate control, economie conditions and financial performance

Abstract

The financial characteristics of owner-managed and professionally-managed companies are studied across two decades representing different economic conditions. The results show that professionally-managed companies out-performed the owner-managed companies, and that there are significant differences in financial structures between the two groups. This conclusion broadly agrees with those of prior studies although, unlike this work, they each investigated much shorter periods. Despite some differences in the variability of the means, this relationship persists across the decades. However, the evidence suggests that some cycle other than that defined here is influencing the results.

Keywords:

• agency theory
• control structures
• owner-manager

Additional information

Notes on contributors

Richard Day

Richard Day is an Assistant Director of the Geological Survey based at the Marine Geoscience Unit.

Enrico Uliana

Enrico Uliana is an Associate Professor in the Department of Accounting