Ownership structure and firm performance: Evidence from German companies during and after the financial crisis of 2008-2011
Autor(a) principal: | |
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Data de Publicação: | 2019 |
Tipo de documento: | Dissertação |
Idioma: | eng |
Título da fonte: | Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
Texto Completo: | http://hdl.handle.net/10071/19556 |
Resumo: | While the world is still recovering from the effects of the latest financial crisis, the threat of another one wanders again over economies. Many have attributed the causes of the financial crisis of 2008 to wrong corporate governance practices, especially excessive risk taking and bad monitoring. One of the corporate governance mechanisms which should prevent such events is ownership structure, as shareholders’ duty is to protect the company’s activity in order for it to prevail and satisfy their interests. Germany’s peculiar corporate governance model has been long studied in an attempt to understand whether its characteristics ensure better corporate performance or not. Using a sample of 250 firms from 2007 to 2016, the present study aims to understand the impact that different shareholder types (i.e. insiders, institutional and family) had on firm performance during and after the financial crisis. Through an econometric analysis, one can conclude that family shareholders present a positive impact on performance during both periods, aligned with their long-term view of the business. Institutional shareholders have a negative impact on performance during the periods in analysis, given their focus on return maximization and not in assisting the company on sustaining market downturns. Contrarily, insiders have impacted performance positively during the crisis, but negatively after it. These non-linear results confirm the inherent effect of entrenchment as, in times of crisis, insiders attempt to improve company’s performance, however afterwards they seek rewards for their efforts, leading to agency problems. |
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Ownership structure and firm performance: Evidence from German companies during and after the financial crisis of 2008-2011Corporate governanceOwnershipFinancial crisisGermanyGovernação corporativaEstrutura accionistaCrise financeira -- 2008AlemanhaGestão de empresasGovernançaAcionista -- ShareholderPerformanceWhile the world is still recovering from the effects of the latest financial crisis, the threat of another one wanders again over economies. Many have attributed the causes of the financial crisis of 2008 to wrong corporate governance practices, especially excessive risk taking and bad monitoring. One of the corporate governance mechanisms which should prevent such events is ownership structure, as shareholders’ duty is to protect the company’s activity in order for it to prevail and satisfy their interests. Germany’s peculiar corporate governance model has been long studied in an attempt to understand whether its characteristics ensure better corporate performance or not. Using a sample of 250 firms from 2007 to 2016, the present study aims to understand the impact that different shareholder types (i.e. insiders, institutional and family) had on firm performance during and after the financial crisis. Through an econometric analysis, one can conclude that family shareholders present a positive impact on performance during both periods, aligned with their long-term view of the business. Institutional shareholders have a negative impact on performance during the periods in analysis, given their focus on return maximization and not in assisting the company on sustaining market downturns. Contrarily, insiders have impacted performance positively during the crisis, but negatively after it. These non-linear results confirm the inherent effect of entrenchment as, in times of crisis, insiders attempt to improve company’s performance, however afterwards they seek rewards for their efforts, leading to agency problems.Enquanto o mundo recupera dos efeitos da crise financeira mais recente, a ameaça eminente de uma nova crise paira sobre as economias. Muitos atribuiram a causa da crise financeira de 2008 a práticas erradas de governação corporativa, em particular a tomada de risco excessivo e má monitorização. Um dos mecanismos que deveria prevenir tais acontecimentos é a estrutura accionista, uma vez que é o dever dos accionistas proteger a empresa, por forma a que esta continue a existir para satisfazer os seus interesses. O modelo peculiar de governação corporativa alemão tem sido amplamente estudado para tentar entender se as suas caracteristicas melhoram o desempenho das empresas ou não. Através de uma amostra de 250 empresas para os anos de 2007 a 2016, o presente estudo procura o entender o impacto que diferentes tipos de accionistas (sejam membros internos, institucionais ou famílias) tiveram na empresa durante e depois da crise financeira. Usando um modelo econométrico, concluiu-se que famílias como accionistas tiveram um impacto positivo na empresa durante os dois periodos, característico da sua visão orientada para o longo prazo. Por outro lado, accionistas institucionais tiveram um impacto negativo, uma vez que o seu objectivo é a maximização de lucros e não assistência durante períodos conturbados. Os membros internos impactaram o desempenho positivamente durante a crise, mas negativamente depois dela. Estes resultados confirmam o conceito de enraização pois, em tempo de crise, tentam melhorar o desempenho da empresa, mas depois procuram recompensas pelos seus esforços, dando origem a problemas de agência.2020-01-21T15:21:46Z2019-12-18T00:00:00Z2019-12-182019-10info:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/masterThesisapplication/pdfhttp://hdl.handle.net/10071/19556TID:202358798engSantos, Ana Rita da Silva Portugal dosinfo:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2023-11-09T17:32:33Zoai:repositorio.iscte-iul.pt:10071/19556Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-19T22:14:36.902629Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse |
dc.title.none.fl_str_mv |
Ownership structure and firm performance: Evidence from German companies during and after the financial crisis of 2008-2011 |
title |
Ownership structure and firm performance: Evidence from German companies during and after the financial crisis of 2008-2011 |
spellingShingle |
Ownership structure and firm performance: Evidence from German companies during and after the financial crisis of 2008-2011 Santos, Ana Rita da Silva Portugal dos Corporate governance Ownership Financial crisis Germany Governação corporativa Estrutura accionista Crise financeira -- 2008 Alemanha Gestão de empresas Governança Acionista -- Shareholder Performance |
title_short |
Ownership structure and firm performance: Evidence from German companies during and after the financial crisis of 2008-2011 |
title_full |
Ownership structure and firm performance: Evidence from German companies during and after the financial crisis of 2008-2011 |
title_fullStr |
Ownership structure and firm performance: Evidence from German companies during and after the financial crisis of 2008-2011 |
title_full_unstemmed |
Ownership structure and firm performance: Evidence from German companies during and after the financial crisis of 2008-2011 |
title_sort |
Ownership structure and firm performance: Evidence from German companies during and after the financial crisis of 2008-2011 |
author |
Santos, Ana Rita da Silva Portugal dos |
author_facet |
Santos, Ana Rita da Silva Portugal dos |
author_role |
author |
dc.contributor.author.fl_str_mv |
Santos, Ana Rita da Silva Portugal dos |
dc.subject.por.fl_str_mv |
Corporate governance Ownership Financial crisis Germany Governação corporativa Estrutura accionista Crise financeira -- 2008 Alemanha Gestão de empresas Governança Acionista -- Shareholder Performance |
topic |
Corporate governance Ownership Financial crisis Germany Governação corporativa Estrutura accionista Crise financeira -- 2008 Alemanha Gestão de empresas Governança Acionista -- Shareholder Performance |
description |
While the world is still recovering from the effects of the latest financial crisis, the threat of another one wanders again over economies. Many have attributed the causes of the financial crisis of 2008 to wrong corporate governance practices, especially excessive risk taking and bad monitoring. One of the corporate governance mechanisms which should prevent such events is ownership structure, as shareholders’ duty is to protect the company’s activity in order for it to prevail and satisfy their interests. Germany’s peculiar corporate governance model has been long studied in an attempt to understand whether its characteristics ensure better corporate performance or not. Using a sample of 250 firms from 2007 to 2016, the present study aims to understand the impact that different shareholder types (i.e. insiders, institutional and family) had on firm performance during and after the financial crisis. Through an econometric analysis, one can conclude that family shareholders present a positive impact on performance during both periods, aligned with their long-term view of the business. Institutional shareholders have a negative impact on performance during the periods in analysis, given their focus on return maximization and not in assisting the company on sustaining market downturns. Contrarily, insiders have impacted performance positively during the crisis, but negatively after it. These non-linear results confirm the inherent effect of entrenchment as, in times of crisis, insiders attempt to improve company’s performance, however afterwards they seek rewards for their efforts, leading to agency problems. |
publishDate |
2019 |
dc.date.none.fl_str_mv |
2019-12-18T00:00:00Z 2019-12-18 2019-10 2020-01-21T15:21:46Z |
dc.type.status.fl_str_mv |
info:eu-repo/semantics/publishedVersion |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/masterThesis |
format |
masterThesis |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
http://hdl.handle.net/10071/19556 TID:202358798 |
url |
http://hdl.handle.net/10071/19556 |
identifier_str_mv |
TID:202358798 |
dc.language.iso.fl_str_mv |
eng |
language |
eng |
dc.rights.driver.fl_str_mv |
info:eu-repo/semantics/openAccess |
eu_rights_str_mv |
openAccess |
dc.format.none.fl_str_mv |
application/pdf |
dc.source.none.fl_str_mv |
reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação instacron:RCAAP |
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Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
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RCAAP |
institution |
RCAAP |
reponame_str |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
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Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
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Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
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