Working Paper: CEPR ID: DP3626
Authors: David B. Audretsch; Erik Lehmann
Abstract: We study the implications of ownership and its induced incentives on firm performance in the ?New Economy?. Instead of traditional performance we use firm survival on the stock market as the performance indicator. Using a unique data set of all 341 firms listed on the Neuer Markt, the German counterpart of the NASDAQ, our results differ from studies on more traditional firms. Ownership by CEOs has no influence on firm survival when introducing measurements of human capital and intellectual property rights. This confirms assumptions that firms in the ?New Economy? differ also in their governance structure from traditional firms.
Keywords: Corporate Governance; Entrepreneurship; Firm Survival; New Economy
JEL Codes: C14; G32; L11; M13
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| CEO ownership (M12) | firm survival (L21) |
| human capital (J24) | firm survival (L21) |
| intellectual property rights (O34) | firm survival (L21) |
| firm size (L25) | firm survival (L21) |
| venture capital ownership (G32) | firm survival (L21) |
| human capital (J24) | performance metrics (C52) |
| intellectual property rights (O34) | performance metrics (C52) |