publication . Article . Preprint . 2011

Small business groups enhance performance and promote stability, not expropriation. Evidence from French SMEs

Anaïs Hamelin;
Open Access English
  • Published: 01 Mar 2011
  • Publisher: HAL CCSD
  • Country: France
Abstract
This paper investigates the influence of a firm’s distance from control on its performance, using a unique firm level data set on small business ownership, as well as balance sheet information. This study fills a gap in the empirical governance literature by investigating whether or not there is an expropriation of minority shareholders in small business groups. Contrary to what is usually observed for large business groups, results show a positive relationship between the separation of control from ownership and firm performance. Results also underline that tunneling is used to promote controlling shareholders’ profit stability rather than profit maximization i...
Subjects
free text keywords: Ownership, Control, Tunneling, Small Business, Performance., Ownership Control Tunneling Small business Performance, [QFIN.GN]Quantitative Finance [q-fin]/General Finance [q-fin.GN], jel:G32, jel:G34, Economics and Econometrics, Finance, Profit maximization, Positive relationship, Shareholder, Small business, business.industry, business, Balance sheet, Expropriation, Economics, Corporate governance

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publication . Article . Preprint . 2011

Small business groups enhance performance and promote stability, not expropriation. Evidence from French SMEs

Anaïs Hamelin;