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Dynamics in Ownership and Firm Survival: Evidence from Corporate Germany
Author(s) -
Heiss Florian,
Köke Jens
Publication year - 2004
Publication title -
european financial management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.311
H-Index - 64
eISSN - 1468-036X
pISSN - 1354-7798
DOI - 10.1111/j.1468-036x.2004.00244.x
Subject(s) - corporate governance , leverage (statistics) , business , german , monetary economics , affect (linguistics) , financial system , economics , finance , linguistics , philosophy , archaeology , machine learning , computer science , history
This study investigates the determinants of changes in corporate ownership and firm failure for German firms. We find that many of the determinants of failure also affect ownership changes in this bank‐based economy. They include poor performance, weak corporate governance, high leverage, and small firm size. The ownership structure also plays a role for both events. Separate analyses of one of these events are therefore likely to miss important effects. The implications for the German corporate governance system are that the differences to countries with more market‐based systems are not as pronounced as previously speculated.