Measuring and explaining management practices across firms and countries
We use an innovative survey tool to collect management practice data from 732 medium-sized firms in the United States, France, Germany, and the United Kingdom. These measures of managerial practice are strongly associated with firm-level productivity, profitability, Tobin's Q, and survival rates. Management practices also display significant cross-country differences, with U.S. firms on average better managed than European firms, and significant within-country differences, with a long tail of extremely badly managed firms. We find that poor management practices are more prevalent when product market competition is weak and/or when family-owned firms pass management control down to the eldest sons (primogeniture).
1 November 2007
The Quarterly Journal of Economics 122(4) , pp.1351-1408, 2007
This Journal article is published under the centre's Growth programme.
This publication comes under the following theme: Management practices and productivity