Product Market Competition, Corporate Governance, And Firm Performance: An Empirical Analysis For Germany
Silke I. Januszewski
Massachusetts Institute of Technology (MIT)
Jens F. Koke
affiliation not provided to SSRN
Joachim K. Winter
University of Munich
This study examines the impact of product market competition and corporate governance on productivity growth in German manufacturing. Using a panel of almost 500 firms over the years 1986--94, we find that firms experience higher productivity growth when operating in markets with intense competition. Similarly, productivity growth is higher for firms under control of a strong ultimate owner, but not when the ultimate owner is a financial institution (a group that consisted almost exclusively of German banks and insurance firms in our sample period). Our results also indicate that competition and tight control are complements: The positive effect of competition is enhanced by the presence of a strong ultimate owner.
Number of Pages in PDF File: 34
Keywords: competition, corporate governance, productivity
JEL Classification: D24, D43, G32working papers series
Date posted: August 14, 2001
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