IDEAS home Printed from https://ideas.repec.org/a/rje/bellje/v4y1973ispringp293-303.html
   My bibliography  Save this article

The Profit-Performance Effects of the Separation of Ownership from Control in Large U.S. Industrial Corporations

Author

Listed:
  • John Palmer

Abstract

After a survey of the empirical studies of Monsen, Chiu, and Cooley, of Kamerschen, and of Larner on the effects of the separation of ownership from control, this paper presents a study which shows that among firms with a high degree of monopoly power, management-controlled firms report significantly lower profit rates than owner-controlled firms. The works of Bain, Mann, and Shepherd and a 1967 FTC study supply information on barriers to entry, which more aptly capture the effect of separation of ownership and control. The findings confirm Hall and Weiss' conclusion that there is less variation in profit rates among large firms than among small ones.

Suggested Citation

  • John Palmer, 1973. "The Profit-Performance Effects of the Separation of Ownership from Control in Large U.S. Industrial Corporations," Bell Journal of Economics, The RAND Corporation, vol. 4(1), pages 293-303, Spring.
    • Handle: RePEc:rje:bellje:v:4:y:1973:i:spring:p:293-303
    as

    Download full text from publisher

    File URL: http://links.jstor.org/sici?sici=0005-8556%28197321%294%3A1%3C293%3ATPEOTS%3E2.0.CO%3B2-4&origin=repec
    File Function: full text
    Download Restriction: Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mark Roe, 2002. "Les rentes et leurs conséquences en matière de gouvernance des entreprises," Revue Finance Contrôle Stratégie, revues.org, vol. 5(1), pages 167-215, March.
    2. Andy Cosh & Paul Guest & Alan Hughes, 2007. "UK Corporate Governance and Takeover Performance," Working Papers wp357, Centre for Business Research, University of Cambridge.
    3. Vincent O. Ongore & Peter O. K'Obonyo, 2011. "Effects of Selected Corporate Governance Characteristics on Firm Performance: Empirical Evidence from Kenya," International Journal of Economics and Financial Issues, Econjournals, vol. 1(3), pages 99-122, September.
    4. William P. Lloyd & John S. Jahera Jr. & Steven J. Goldstein, 1986. "The Relation Between Returns, Ownership Structure, And Market Value," Journal of Financial Research, Southern Finance Association;Southwestern Finance Association, vol. 9(2), pages 171-177, June.
    5. Khushboo Gulati & Seema Gupta & C. P. Gupta, 2020. "The Transformation of Governance System: A Decade Long Experience of Corporate Governance Using Meta-analysis," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 21(3), pages 233-262, September.
    6. James A. Verbrugge & Steven J. Goldstein, 1981. "Risk Return, And Managerial Objectives: Some Evidence From The Savings And Loan Industry," Journal of Financial Research, Southern Finance Association;Southwestern Finance Association, vol. 4(1), pages 45-58, March.
    7. Bøhren, Øyvind & Josefsen, Morten G., 2013. "Stakeholder rights and economic performance: The profitability of nonprofits," Journal of Banking & Finance, Elsevier, vol. 37(11), pages 4073-4086.
    8. Andy Cosh & Paul M. Guest & Alan Hughes, 2006. "Board Share‐Ownership and Takeover Performance," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 33(3‐4), pages 459-510, April.
    9. MORIKAWA Masayuki, 2008. "Productivity and Survival of Family Firms in Japan: An Analysis Using Firm-Level Microdata," Discussion papers 08026, Research Institute of Economy, Trade and Industry (RIETI).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rje:bellje:v:4:y:1973:i:spring:p:293-303. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://www.rje.org .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.