Ownership Structure and Firm Performance: Evidence from Israel

The study examines the effect of ownership structure on firm performance. We distinguish between family firms, firms controlled by partnerships of individuals, concern controlled firms, and firms where blockholders have less than 50% of the vote. The empirical work analyzes data on 280 Israeli firms and employs the technique of Data Envelopment Analysis. It is found that owner-manager firms are less efficient in generating net income than firms managed by a professional (non-owner) manager, and that family firms run by their owners perform (relatively) the worst. This evidence suggests that the modern form of business organization, namely the open corporation with disperse ownership and non-owner managers, promotes firm performance.     

The development of economic notions: Single sequence or separate acquisitions?

The conceptions on shops and factories of a group of 3rd-grade children were assessed by means of the Piagetian clinical method. Factorial analysis showed that children's answers about the two economic institutions yielded two distinct factors. Children were then divided into three groups (one control and two experimental); children in the experimental groups were taught, by means of two different training procedures, how the shopkeeper can earn a profit. A post-test interview, one month later, showed that both experimental groups had progressed in the target notion; however, children did not generalize to the factory what they had learned about shops. According to these results, 3rd-graders' thinking about economics consists of separate part-systems, which will eventually become integrated as children grow older.     

The Quality of Spontaneous Movements of Preterm Infants: Associations with the Quality of Mother–Infant Interaction

The assessment of the quality of infants’ spontaneous movements is a diagnostic tool for the young nervous system. We examined whether it relates to the quality of the interactions between infants born preterm and their mothers. Thirty‐nine healthy infants born preterm (M_{age in weeks} = 14.59, SD = 2.21; 38.46% female) and their mothers participated in the study. Infants’ quality of spontaneous movements was assessed using the General Movement Assessment according to Prechtl (Prechtl, Early Human Development 1990, 23, 151). A new measurement was employed to evaluate the following aspects of the mother–infant interaction: maternal sensitivity in the motor modality (i.e., when touching, picking up, holding, and putting down the infant), maternal sensitivity in the modalities of vocalization and eye contact, and infants’ positive engagement. Several aspects of infants’ quality of movements were associated with maternal sensitivity in the motor modality and infants’ positive engagement, but not with maternal sensitivity in the modalities of vocalization and eye contact. These findings suggest that the quality of infants’ spontaneous movements may explain some of the variability in the interactions between infants born preterm and their mothers. The results also highlight the importance of differentiating between the modalities of mothers’ behavior when assessing their sensitivity. Implications for research and practice with families of preterm infants are discussed.     

Internal vs. External Successions and Their Effect on Firm Performance

An examination of 165 top management successionsin U.S. firms during 1989-91 reveals that externalsuccessions are more likely in small firms, in firmswith poor economic performance, and in firms which offer the successor several top positions (forexample, Chairman and CEO). This last findingillustrates that successor's interests and demands (suchas organizational power) are also important indetermining the final match between manager and firm. Wealso find that, on average, the postsuccessionperformance of external successors is superior to thatof internal successors. This could indicate that theBoard of Directors faces an agency problem, leadingit to appoint too often from inside.