Using a panel data set of 361 German corporations for the period 1991-1996 we test the hypothesis that firms with more efficient governance structures have higher profitabilities. To determine efficiency we compare firms with respect to ownership concentration, the identity of owners, capital...

Although there has been an intensive debate on the relative merits of different sys-tems of corporate governance, empirical evidence on the link between corporate governance andfirm performance almost exclusively refers to the market-oriented Anglo-Saxon system. This papertherefore investigates...