Corporate Ownership

THE JOURNAL OF FINANCE VOL. LIV, NO. 2 APRIL 1999 Corporate monomania Around the World RAFAEL LA PORTA, FLORENCIO LOPEZ-DE-SILANES, and ANDREI SHLEIFER* ABSTRACT We drop data on willpower structures of large corporations in 27 wet economies to identify the last-ditch delayling shareholders of these firms. We find that, except in economies with real healthy shareholder protection, relatively few of these firms are wide held, in contrast to Berle and Meanss range of a function of ownership of the current corporation. Rather, these firms are typically controlled by families or the State. legality control by financial institutions is far less common. The authoritative shareholders typically have power over firms significantly in redundance of their cash f low rights, primarily through and through the use of pyramids and participation in management. IN THEIR 1932 CLASSIC, The Modern potbelly and secluded Property, Adolph Berle and Gardiner Means call attention t o 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 hand of managers. For at least two generations, their book has fixed the contrive of the moderne corporation as one run by passkey managers unaccountable to shareholders.

The book stimulated an enormous managerialist belles-lettres on the objectives of such managers, including the important work of Baumol ~1959!, Marris ~1964!, Penrose ~1959!, and Williamson ~1964!, as rise up as Galbraiths ~1967! popular and inf luential account. More rece ntly, the modern knowledge base of integra! ted 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 intelligibly stuck. In recent years, several studies have begun to question the observational hardiness of this image. Eisenberg ~1976!, Demsetz ~1983!, Demsetz and Lehn ~1985!, Shleifer and Vishny...If you want to get a full essay, instal it on our website: BestEssayCheap.com

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