Does the New Economy Need New Governance? Ownership, Knowledge and Performance

Audretsch, David B.; Lehmann, Erik E.

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Does the New Economy Need New Governance? Ownership, Knowledge and Performance

43 Pages Posted: 24 Jan 2003

See all articles by David B. Audretsch

David B. Audretsch

Indiana University Bloomington - School of Public & Environmental Affairs (SPEA)

Erik E. Lehmann

University of Augsburg - Faculty of Business and Economics

Date Written: November 2002

Abstract

We study the implications of ownership and its induced incentives on firm performance in the 'New Economy'. Instead of traditional performance we use firm survival on the stock market as the performance indicator. Using a unique data set of all 341 firms listed on the Neuer Markt, the German counterpart of the NASDAQ, our results differ from studies on more traditional firms. Ownership by CEOs has no influence on firm survival when introducing measurements of human capital and intellectual property rights. This confirms assumptions that firms in the 'New Economy' differ also in their governance structure from traditional firms.

Keywords: Firm survival, corporate governance, new economy, entrepreneurship

JEL Classification: C14, G32, L11, M13

Suggested Citation: Suggested Citation

Audretsch, David B. and Lehmann, Erik E., Does the New Economy Need New Governance? Ownership, Knowledge and Performance (November 2002). Available at SSRN: https://ssrn.com/abstract=373481