Ownership structure and efficiency: An incentive mechanism approach

Ownership , Control , and Incentive

The paper shows that the principal can enhance her control over the agent’s human capital by acquiring the physical capital that is critical for him to create value. However, the enhancement in the control necessarily reduces his incentive to make human capital investment ex ante and to exert e¤ort ex post. This trade-o¤ between control and incentive thus decides the boundary of the …rm. The pa...

Ownership Structure and Share Repurchases in an Emerging Market: Incentive Alignment or Entrenchment?

This paper examines how control and ownership structure affect share repurchases in an emerging market where controlling families derive large private benefits. Whereas firms with concentrated ownership often pay cash dividends, firms with weak control rights often repurchase shares. The magnitude of repurchase increases with weak control rights, but decreases with strong foreign ownership. The...

Energy Efficiency, Ownership Structure, and Sustainable Development: Evidence from China

Low energy efficiency and severe environmental pollution are two growing issues haunting China’s fast economic development. Under China’s current development model, economic growth still heavily depends on massive energy input, which makes energy efficiency one crucial topic in order to secure future sustainable development of China. This paper focuses on the unique energy ownership structure o...

Ownership Structure and Building Society Efficiency by Tiffany Hutcheson †

This paper investigates the effect of ownership structure on the cost efficiency of Australian building societies using the stochastic econometric frontier approach. Contrary to the expense preference hypothesis, mutually-owned societies were found to be, on average, more cost efficient than those under stock ownership. Moreover, mutual and share-owned societies have significantly different cos...

Efficiency and Ownership Structure : The Case of Poland