Corporate self-possession Around the World
RAFAEL LA PORTA, FLORENCIO LOPEZ-DE-SILANES, and ANDREI SHLEIFER* ABSTRACT
We drop data on ownership structures of large corporations in 27 wealthy economies to identify the last-ditch delayling shareholders of these firms. We find that, except in economies with very healthy shareholder protection, relatively few of these firms are widely held, in contrast to Berle and Meanss image of ownership of the current corporation. Rather, these firms are typically controlled by families or the State. Equity control by financial institutions is far less common. The controlling shareholders typically have power over firms significantly in redundance of their cash f low rights, primarily through the use of pyramids and participation in management.
IN THEIR 1932 CLASSIC, The Modern Corporation and secluded Property, Adolph Berle and Gardiner Means call attention to the prevalence of widely held corporations in the United States, in which ownership of capital is dispersed among fiddling shareholders, yet control is concentrated in the hands of managers. For at least two generations, their book has fixed the image of the moderne corporation as one run by passkey managers unaccountable to shareholders.
The book stimulated an enormous managerialist literature 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 recently, the modern field of integrated 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 clearly 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, order it on our website: Ordercustompaper.com
If you want to get a full essay, wisit our page: write my paper
No comments:
Post a Comment