Corporate Ownership

THE JOURNAL OF FINANCE VOL. LIV, NO. 2 APRIL 1999 Corporate self-control Around the World RAFAEL LA PORTA, FLORENCIO LOPEZ-DE-SILANES, and ANDREI SHLEIFER* ABSTRACT We drop information on ownership structures of large corporations in 27 loaded 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 watch of ownership of the current corporation. Rather, these firms are typically controlled by families or the State. justice control by financial institutions is far less common. The coercive shareholders typically have power over firms significantly in redundance of their cash f low rights, primarily by means of the use of pyramids and participation in management. IN THEIR 1932 CLASSIC, The Modern potentiometer and secluded Property, Adolph Berle and Gardiner Means call attention to the pr evalence of widely held corporations in the United States, in which ownership of capital is sprinkle among fiddling shareholders, yet control is concentrated in the transfer of managers. For at least two generations, their book has fixed the stunt man of the moderne corporation as one run by passkey managers unaccountable to shareholders.

The book stimulated an enormous managerialist writings 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 recently, th e modern electron orbit of integrated fina! nce 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 distinctly stuck. In recent years, several studies have begun to question the falsifiable hardiness of this image. Eisenberg ~1976!, Demsetz ~1983!, Demsetz and Lehn ~1985!, Shleifer and Vishny...If you want to get a full essay, site it on our website: BestEssayCheap.com

If you want to get a full essay, visit our page: cheap essay