TY - JOUR
T1 - Ownership structure and firm performance
T2 - Evidence from Israel
AU - Lauterbach, Beni
AU - Vaninsky, Alexander
PY - 1999/6
Y1 - 1999/6
N2 - The study examines the effect of ownership structure on firm performance. We distinguish between family firms, firms controlled by partnerships of individuals, concern controlled firms, and firms where blockholders have less than 50% of the vote. The empirical work analyzes data on 280 Israeli firms and employs the technique of Data Envelopment Analysis. It is found that owner-manager firms are less efficient in generating net income than firms managed by a professional (non-owner) manager, and that family firms run by their owners perform (relatively) the worst. This evidence suggests that the modern form of business organization, namely the open corporation with disperse ownership and non-owner managers, promotes firm performance.
AB - The study examines the effect of ownership structure on firm performance. We distinguish between family firms, firms controlled by partnerships of individuals, concern controlled firms, and firms where blockholders have less than 50% of the vote. The empirical work analyzes data on 280 Israeli firms and employs the technique of Data Envelopment Analysis. It is found that owner-manager firms are less efficient in generating net income than firms managed by a professional (non-owner) manager, and that family firms run by their owners perform (relatively) the worst. This evidence suggests that the modern form of business organization, namely the open corporation with disperse ownership and non-owner managers, promotes firm performance.
KW - Family firms
KW - Firm performance
KW - Owner-managers
KW - Ownership structure
UR - http://www.scopus.com/inward/record.url?scp=0005139710&partnerID=8YFLogxK
U2 - 10.1023/A:1009990008724
DO - 10.1023/A:1009990008724
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AN - SCOPUS:0005139710
SN - 1385-3457
VL - 3
SP - 189
EP - 201
JO - Journal of Management and Governance
JF - Journal of Management and Governance
IS - 2
ER -