Governance, performance objectives and organizational form

Evidence from hospitals

Leslie G Eldenburg, Benjamin E. Hermalin, Michael S. Weisbach, Marta Wosinska

Research output: Contribution to journalArticle

76 Citations (Scopus)

Abstract

In a sample of California hospitals, we find that the composition of the board of directors varies systematically across ownership types. For all ownership types, except government-owned, we find that poor financial performance is related to board and CEO turnover. However, different ownership types place different weights on levels of charity care and administrative expenses. Our overall findings support the proposition that ownership type reflects heterogeneity across consumers and producers, and that differences in these groups lead to differences in the organization's objectives and governance.

Original languageEnglish (US)
Pages (from-to)527-548
Number of pages22
JournalJournal of Corporate Finance
Volume10
Issue number4
DOIs
StatePublished - Sep 2004

Fingerprint

Governance
Ownership
Organizational form
CEO turnover
Expenses
Financial performance
Government
Charity
Consumer heterogeneity
Board of directors

Keywords

  • Governance
  • Hospitals
  • Organizational form
  • Performance objectives

ASJC Scopus subject areas

  • Business and International Management
  • Strategy and Management
  • Economics and Econometrics
  • Finance

Cite this

Governance, performance objectives and organizational form : Evidence from hospitals. / Eldenburg, Leslie G; Hermalin, Benjamin E.; Weisbach, Michael S.; Wosinska, Marta.

In: Journal of Corporate Finance, Vol. 10, No. 4, 09.2004, p. 527-548.

Research output: Contribution to journalArticle

Eldenburg, Leslie G ; Hermalin, Benjamin E. ; Weisbach, Michael S. ; Wosinska, Marta. / Governance, performance objectives and organizational form : Evidence from hospitals. In: Journal of Corporate Finance. 2004 ; Vol. 10, No. 4. pp. 527-548.
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