An Analysis of Majority Owner-Managed Companies in the UK

46 Pages Posted: 7 May 2004

See all articles by Patrick McColgan

Patrick McColgan

University of Strathclyde

David Hillier

University of Strathclyde - Department of Accounting and Finance

Multiple version iconThere are 2 versions of this paper

Date Written: January 12, 2004

Abstract

This paper investigates the characteristics of 73 UK firms in which managers have an ownership greater than fifty percent. We find that majority owner-managed companies make less use of alternative corporate control systems and are less likely to remove their CEO or other board memebers following poor performance. In contrast to other firms, these companies do not appear to suffer as a result and there is evidence that majority owned firms outperform other similar companies. The determinants of majority control appear more closely related to the characteristics of the controlling shareholders rather than the firm's operating environment. Changes in the ownership structure of our sample is more closely related to changes in owner-specific characteristics and equity issuance than they are to changes in firm-specific characteristics and company performance.

Keywords: Corporate Governance, Majority, Owner Managed, Corporate Control

JEL Classification: G32

Suggested Citation

McColgan, Patrick and Hillier, David, An Analysis of Majority Owner-Managed Companies in the UK (January 12, 2004). EFMA 2004 Basel Meetings Paper. Available at SSRN: https://ssrn.com/abstract=486883 or http://dx.doi.org/10.2139/ssrn.486883

Patrick McColgan

University of Strathclyde ( email )

Curran Building
100 Cathedral Street
Glasgow, G4 0LN
United Kingdom
+44 1415483690 (Phone)

David Hillier (Contact Author)

University of Strathclyde - Department of Accounting and Finance ( email )

Curran Building
100 Cathedral Street
Glasgow G4 0LN
United Kingdom
44 0141 330 4809 (Phone)
44 0141 330 4442 (Fax)

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