Sunk Costs, Managerial Incentives and Firm Productivity — Empirical Evidence for German Corporations
Year: 2001
Author: Groß-Schuler, Alexandra, Weigand, Jürgen
Vierteljahrshefte zur Wirtschaftsforschung, Vol. 70 (2001), Iss. 2 : pp. 275–287
Abstract
In this paper, we use a production function approach to examine the impact of ownership concentration, product market competition and financial pressure on German firm productivity. Additionally, we are interested in the influence of ownership identity and changes in ownership structure. We also test whether the specificity of assets affects productivity performance. Based on a panel of 361 German manufacturing companies for the time period of 1991–1996 we find that supplier concentration has a positive influence on firm productivity. There is also some evidence for a discipline-of-debt effect. Interestingly, the presence of several strong shareholders affects productivity negatively. In high sunk costs industries an owner change is negatively correlated with firm productivity whereas in low sunk costs industries productivity increases after owners have changed.
Journal Article Details
Publisher Name: Global Science Press
Language: German
DOI: https://doi.org/10.3790/vjh.70.2.275
Vierteljahrshefte zur Wirtschaftsforschung, Vol. 70 (2001), Iss. 2 : pp. 275–287
Published online: 2001-04
AMS Subject Headings: Duncker & Humblot, Duncker & Humblot
Copyright: COPYRIGHT: © Global Science Press
Pages: 13