Corporate Ownership

THE JOURNAL OF FINANCE VOL. LIV, NO. 2 APRIL 1999 Corporate self-discipline Around the World RAFAEL LA PORTA, FLORENCIO LOPEZ-DE-SILANES, and ANDREI SHLEIFER* ABSTRACT We drop data on self-command structures of large corporations in 27 plastered economies to identify the last-ditch delayling shareholders of these firms. We find that, except in economies with really healthy shareholder protection, relatively few of these firms are astray held, in contrast to Berle and Meanss consider of ownership of the current corporation. Rather, these firms are typically controlled by families or the State. integrity control by financial institutions is far less common. The overbearing shareholders typically have power over firms significantly in redundance of their cash f low rights, primarily through with(predicate) the use of pyramids and participation in management. IN THEIR 1932 CLASSIC, The Modern locoweed and secluded Property, Adolph Berle and Gardiner Means ca ll attention to the prevalence of wide held corporations in the United States, in which ownership of capital is sprinkle among fiddling shareholders, yet control is concentrated in the detention of managers. For at least two generations, their book has fixed the double of the moderne corporation as one run by passkey managers unaccountable to shareholders.

The book stimulated an enormous managerialist publications on the objectives of such managers, including the important work of Baumol ~1959!, Marris ~1964!, Penrose ~1959!, and Williamson ~1964!, as well as Galbraiths ~1967! popular and inf luential account. More rece ntly, the modern playing field of integrat! ed finance has developed around the same image of a widely held corporation, as can be seen in the commutation contributions of Jensen and Meckling ~1976! or Grossman and Hart ~1980!. The Berle and Means image has clear stuck. In recent years, several studies have begun to question the empirical hardiness of this image. Eisenberg ~1976!, Demsetz ~1983!, Demsetz and Lehn ~1985!, Shleifer and Vishny...If you want to get a full essay, roam it on our website: OrderCustomPaper.com

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