Are There Non-linear Relationships between Ownership Structure and Operational Performance? Empirical Evidence from Portuguese SMEs Using Dynamic Panel Data

摘要

This paper analyzes the causal relationship between the ownership concentration, insider ownership and operationalperformance using a sample of 4.163 Portuguese SMEs and panel data models. The main results show anendogenous and dynamic relationship between those variables. The quadratic specification established betweenownership concentration and operational profitability suggests that for low levels of control rights the expropriationhypothesis prevails and for high levels the supervision hypothesis prevails. It was also possible to validate the effectof entrenchment and convergence of interests in the relationship established between the insider ownership andperformance.