Governance, performance objectives and organizational form: Evidence from hospitals

Leslie Eldenburg, Benjamin E. Hermalin, Michael S. Weisbach, Marta Wosinska

Research output: Contribution to journalArticlepeer-review

105 Scopus citations


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.

Original languageEnglish (US)
Pages (from-to)527-548
Number of pages22
JournalJournal of Corporate Finance
Issue number4
StatePublished - Sep 2004


  • Governance
  • Hospitals
  • Organizational form
  • Performance objectives

ASJC Scopus subject areas

  • Business and International Management
  • Finance
  • Economics and Econometrics
  • Strategy and Management


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