Original Articles

Corporate control, economie conditions and financial performance

Published in: De Ratione
Volume 4, issue 1, 1990 , pages: 15–20
DOI: 10.1080/10108270.1990.11435011
Author(s): Richard DayUniversity of Cape Town,, Enrico UlianaUniversity of Cape Town,


The financial characteristics of owner-managed and professionally-managed companies are studied across two decades representing different economic conditions. The results show that professionally-managed companies out-performed the owner-managed companies, and that there are significant differences in financial structures between the two groups. This conclusion broadly agrees with those of prior studies although, unlike this work, they each investigated much shorter periods. Despite some differences in the variability of the means, this relationship persists across the decades. However, the evidence suggests that some cycle other than that defined here is influencing the results.

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