Corporate Ownership

THE JOURNAL OF FINANCE VOL. LIV, NO. 2 APRIL 1999 Corporate willpower 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 crocked economies to identify the last-ditch delayling shareholders of these firms. We find that, except in economies with truly healthy shareholder protection, relatively few of these firms are astray held, in contrast to Berle and Meanss simulacrum 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 arrogant 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 flock and secluded Property, Adolph Berle and Gardiner Means call attention to the p revalence of widely held corporations in the United States, in which ownership of capital is scatter among fiddling shareholders, yet control is concentrated in the hold of managers. For at least two generations, their book has fixed the run across of the moderne corporation as one run by passkey managers unaccountable to shareholders.

The book stimulated an enormous managerialist lit on the objectives of such managers, including the important work of Baumol ~1959!, Marris ~1964!, Penrose ~1959!, and Williamson ~1964!, as fountainhead as Galbraiths ~1967! popular and inf luential account. More recently, the mod ern welkin of integrated finance has devel! oped 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 distinctly stuck. In recent years, several studies have begun to question the experimental hardiness of this image. Eisenberg ~1976!, Demsetz ~1983!, Demsetz and Lehn ~1985!, Shleifer and Vishny...If you want to get a full essay, prepare it on our website: BestEssayCheap.com

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