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The Government as a Shareholder: A Case From The U.S.

Working Paper FR 95-03

Posted: 15 Sep 1999  

Stacey R. Kole

University of Chicago - Booth School of Business

J. Harold Mulherin

University of Georgia - Department of Banking and Finance

Abstract

We study a sample of U.S. corporations in which the federal government held between 35 percent and 100 percent of the outstanding common stock during and following World War II. We find that the firms experienced abnormally high turnover among corporate board members but that the tenure of senior management was relatively stable. We also find that the performance of the government-owned companies was not significantly different than private-sector firms in the same industry. We attribute this comparable performance of the government-controlled firms to monitoring mechanisms such as analyst valuation, tradeable shares and competitive product markets that are not normally associated with public ownership.

JEL Classification: H8

Suggested Citation

Kole, Stacey R. and Mulherin, J. Harold, The Government as a Shareholder: A Case From The U.S.. Working Paper FR 95-03. Available at SSRN: https://ssrn.com/abstract=6123

Stacey Reva Kole (Contact Author)

University of Chicago - Booth School of Business ( email )

5807 S. Woodlawn Avenue
Chicago, IL 60637
United States

J. Harold Mulherin

University of Georgia - Department of Banking and Finance ( email )

Terry College of Business
Athens, GA 30602-6253
United States
706-542-3644 (Phone)

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