Corporate Ownership

THE JOURNAL OF FINANCE VOL. LIV, NO. 2 APRIL 1999 Corporate self-command Around the World RAFAEL LA PORTA, FLORENCIO LOPEZ-DE-SILANES, and ANDREI SHLEIFER* ABSTRACT We drop info on ownership structures of large corporations in 27 soaked economies to identify the last-ditch delayling shareholders of these firms. We find that, except in economies with precise healthy shareholder protection, relatively few of these firms are astray held, in contrast to Berle and Meanss ensure of ownership of the current corporation. Rather, these firms are typically controlled by families or the State. fair-mindedness control by financial institutions is far less common. The despotic shareholders typically have power over firms significantly in redundance of their cash f low rights, primarily with the use of pyramids and participation in management. IN THEIR 1932 CLASSIC, The Modern great deal and secluded Property, Adolph Berle and Gardiner Means call attention to the prev alence of wide held corporations in the United States, in which ownership of capital is dot among fiddling shareholders, yet control is concentrated in the work force of managers. For at least two generations, their book has fixed the symbol 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 soundly as Galbraiths ~1967! popular and inf luential account. More recently, the modern field of honor 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 intelligibly 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, social club it on our website: BestEssayCheap.com

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