Corporate Governance, Market Discipline, and Productivity Growth

41 Pages Posted: 6 Dec 2001

Date Written: October 2001


Using a large panel of German manufacturing firms over the years 1986-1996, this study examines the impact of corporate governance and market discipline on productivity growth. We find that firms under concentrated ownership tend to show significantly higher productivity growth. Financial pressure from creditors influences productivity growth positively, particularly for firms in financial distress. Regarding market discipline, productivity grows faster when competition on product markets is intense, but only when owner concentration is high. We do not find evidence that the type of the owner, ownership complexity, or the size of the supervisory board is significantly related to productivity growth.

Keywords: competition, corporate governance, ownership structure, productivity

JEL Classification: D24, D43, G32

Suggested Citation

Koke, Jens F., Corporate Governance, Market Discipline, and Productivity Growth (October 2001). ZEW Working Paper No. 01-55, Available at SSRN: or

Jens F. Koke (Contact Author)

Allianz Group ( email )


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