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Journal of Corporate Finance Vol. 10 No. 4 2004

Governance, performance objectives and organizational form: evidence from hospitals

Leslie Eldenburg1; Benjamin E. Hermalin2; Michael S. Weisbach3,4; Marta Wosinska5

1 University of Arizona · 2 University of California, Berkeley · 3 University of Illinois Urbana-Champaign · 4 National Bureau of Economic Research · 5 Harvard University

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.

DOI
10.1016/s0929-1199(03)00031-2
Volume
10
Issue
4
Pages
527-548
Language
en
Sources
bibtex:phds-export.bib openalex crossref

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