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Foundation Ownership and Financial Performance: Do Companies Need Owners?
| Content Provider | Semantic Scholar |
|---|---|
| Author | Thomsen, Steen Grove Rose, Caspar |
| Copyright Year | 2004 |
| Abstract | A curious ownership structure is found in Northern Europe—foundations that own and operate business companies. The foundations are non-profit entities, they have no members and no owners, and they cannot be dissolved. In many cases, these entities control more than 50% of the votes in successful international companies. Obviously, this structure completely blocks the market for corporate control, but it also violates other basic principles of agency theory and corporate finance. Nevertheless, we present evidence that a sample of foundation-owned companies listed on the Copenhagen Stock Exchange are at least as efficient as other listed companies in terms of risk adjusted stock returns, accounting returns and Tobin’s Q. Thus, they question whether profit-seeking ownership is a necessary condition for competitive enterprise. |
| Starting Page | 343 |
| Ending Page | 364 |
| Page Count | 22 |
| File Format | PDF HTM / HTML |
| DOI | 10.1007/s10657-004-4277-y |
| Alternate Webpage(s) | https://openarchive.cbs.dk/bitstream/handle/10398/7198/thomsen_rose.pdf?sequence=1 |
| Alternate Webpage(s) | http://www.cbs.dk/departments/finance/publikationer/wp2002/wp2002-3_ownership_and_performance.pdf |
| Alternate Webpage(s) | http://eale2002.phs.uoa.gr/papers/Thomsen%20&%20Rose.pdf |
| Alternate Webpage(s) | https://doi.org/10.1007/s10657-004-4277-y |
| Volume Number | 18 |
| Language | English |
| Access Restriction | Open |
| Content Type | Text |
| Resource Type | Article |
