Tools
Tools
Bianchi, Milo
ORCID: https://orcid.org/0000-0003-4346-3147 and Luomaranta, Henri
(2021)
Agency costs in small firms.
TSE Working Paper, n. 21-1252, Toulouse
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Abstract
We explore how the separation between ownership and control affects firm productivity. Using administrative panel data on the universe of limited liability firms in Finland, we document a substantial increase in productivity when the CEO obtains majority ownership or when the majority owner becomes the CEO. We exploit plausibly exogenous variations to CEO turnover, induced by shocks to the CEO spouse's health. Extending the analysis beyond typical samples of large public firms, we show that our effects are stronger in medium-sized private firms. We also investigate possible mechanisms and provide suggestive evidence that increased ownership boosts CEO's effort at work.
| Item Type: | Monograph (Working Paper) |
|---|---|
| Language: | English |
| Date: | August 2021 |
| Place of Publication: | Toulouse |
| Uncontrolled Keywords: | CEO ownership, firm productivity, SME. |
| JEL Classification: | D24 - Production; Cost; Capital and Total Factor Productivity; Capacity E23 - Production G30 - General L25 - Firm Performance - Size, Diversification and Scope M12 - Personnel Management |
| Subjects: | B- ECONOMIE ET FINANCE |
| Divisions: | TSE-R (Toulouse) |
| Institution: | Université Toulouse 1 Capitole |
| Site: | UT1 |
| Date Deposited: | 21 Sep 2021 07:35 |
| Last Modified: | 25 Sep 2025 07:47 |
| OAI Identifier: | oai:tse-fr.eu:125982 |
| URI: | https://publications.ut-capitole.fr/id/eprint/43819 |
