Ownership structures as moderators: How they affect management practices and firm outcomes

This study examines how different management practices affect firm performance, with a particular focus on the moderating role of ownership structures. Utilizing secondary data from the World Management Survey, we analyze the management practices of 2,927 firms across 18 countries over seven years. Our findings suggest that ownership structure significantly moderates the relationship between management practices and firm performance, as measured by return on capital employed (ROCE). Specifically, dispersed shareholder firms benefit the most from good management practices, while state-owned enterprises (SOEs) and private equity firms do not fully capitalize on effective management practices. These results contribute to the ongoing debate on the impact of ownership structures on firm performance and offer insights for both academic research and managerial practice.