Title: Post-privatisation ownership structure and firm performance: what is the matter?

Authors: Mouna Mrad

Addresses: Department of Finance, High Institute of Management, 41, rue de la liberté, Bouchoucha-2000 Bardo, Tunisia

Abstract: This paper attempts to examine the relationship between the post-privatisation ownership structure, performance and value creation within French companies as well through their disciplinary role as their cognitive one. Thus, the relationship between residual government ownership and performance is found convex, after privatisation. Such result implies that the control of the State confers benefits in the privatised companies. Managerial ownership is however negatively related to firm performance. So, we can assume that such structure of ownership is associated to an entrenchment effect rather than an incentive one after privatisation. Employee ownership is also negatively and significantly related to economic performance. Concerning, concentrated ownership we have detect no significant effect on performance. Finally, institutional ownership is found to be significantly and positively related to firm performance. Consequently, our results support the majority of the findings generated by the cognitive theory of governance as well as the disciplinary one.

Keywords: privatisation; corporate governance; ownership structure; firm performance; value creation; post-privatisation ownership; France; residual government ownership; employee ownership; managerial ownership; institutional ownership.

DOI: 10.1504/IJMEF.2015.069171

International Journal of Monetary Economics and Finance, 2015 Vol.8 No.1, pp.85 - 108

Published online: 30 Apr 2015 *

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