Work

Is Public Ownership Bad for Professional Service Firms? Ad Agency Ownership, Performance, and Creativity

Year: 2007

Type: article

Abstract: Does public ownership create negative consequences for professional service firms by reducing employee incentives? This question was addressed with a panel of advertising agencies. Public ownership was associated with inferior performance for small agencies but not for large agencies, and there was no association between ownership and agency creativity, indicating that public ownership did not preclude agencies from competing with strategies requiring highly skilled professionals. The results challenge existing theories about the ownership of professional service firms.

Source: Academy of Management Journal

DOI: 10.5465/amj.2007.24634774

Author: Andrew Von Nordenflycht

Institutions: Simon Fraser University, Massachusetts Institute of Technology

Language: English

Topic: Corporate Finance and Governance

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: green

OpenAlex ID: W2031177239

FWCI: 23.09

Cites: 52

Cited by: 132

Related to: 10