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| Content Provider | Springer Nature Link |
|---|---|
| Author | Thomsen, Steen 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 | |
| ISSN | 09291261 |
| Journal | European Journal of Law and Economics |
| Volume Number | 18 |
| Issue Number | 3 |
| e-ISSN | 15729990 |
| Language | English |
| Publisher | Kluwer Academic Publishers |
| Publisher Date | 2004-01-01 |
| Publisher Place | Boston |
| Access Restriction | One Nation One Subscription (ONOS) |
| Subject Keyword | corporate governance concentrated ownership company law and theory of the firm Commercial Law European Integration Public Finance & Economics Law and Economics |
| Content Type | Text |
| Resource Type | Article |
| Subject | Business and International Management Law Economics and Econometrics |
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