On corporate governance: Ownership concentration and firm performance in Italy

Andrea Madaschi

Student thesis: Master thesis


The objective of the work is to provide deeper explanations of the implications of a specific agency problem involved in the relationship between majority and minority shareholder within a firm, applying this thematic to the Italian capitalist system. In order to achieve this aim the work is structured into three parts. The first part aims to analyze the corporate governance topic in general terms. Specifically, after a brief introduction on the agency problems, the agency theory, the origins and the main characteristics of corporate governance, the approach conclusively focuses on the differences among the different countries in the world approaching the topic of corporate governance. The second part entirely analyzes the Italian Capitalist structure under a corporate governance point of view. After exposing the historical sketches bringing the Italian system to the actual scenario, a deeper analysis on the specific agency issues deriving from companies characterized by a concentrated ownership. In conclusion of this part of the work a description of the Italian board structure and the main corporate governance reforms enforced during the recent years is provided. The conclusive part of the dissertation relies on the statistical analysis of non-financial companies listed on the Milan Stock Exchange. In specific, after obtaining the data needed for the regressions from a database specialized on storing ownership and financial data of the companies (Bureau Van Dijk “Orbis”), selected variables, which are considered to be relevant for the study from the observation of major authors’ works, have been regressed against other selected variables aiming to highlight the profitability of the firm and its value. After implementing these regressions the obtained results are commented, criticized and compared to the theories explained during the exposition of the work. The last part of the work comprehends the final remarks and the personal suggestions for the implementation of further researches.

EducationsMSc in Finance and Strategic Management, (Graduate Programme) Final Thesis
Publication date2010
Number of pages102