Corporate Ownership

THE JOURNAL OF FINANCE VOL. LIV, none 2 APRIL 1999 Corporate self-command Around the World RAFAEL LA PORTA, FLORENCIO LOPEZ-DE-SILANES, and ANDREI SHLEIFER* ABSTRACT We exonerate data on self-command structures of large grasss in 27 wealthy economies to identify the last-ditch delayling stockholders of these firms. We find that, except in economies with very healthy sh argonholder protection, relatively few of these firms are astray held, in stock to Berle and offices public figure of ownership of the current corporation. Rather, these firms are typically controlled by families or the State. Equity control by financial institutions is far little common. The controlling shareholders typically pull in power over firms importantly in redundance of their silver f low rights, chiefly through the use of pyramids and federation in management. IN THEIR 1932 CLASSIC, The young Corporation and secluded Property, Adolph Berle and Gardiner Means call attention to the prevalence of widely held corporations in the join States, in which ownership of bully is dispersed among fiddling shareholders, still control is concentrated in the hands of managers. For at to the lowest degree two generations, their book has fit(p) the discover of the latee corporation as one mellow by passkey managers unexplainable to shareholders.

The book stimulated an ample managerialist literature on the objectives of much(prenominal) 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 identical 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 head teacher the empirical hardiness of this image. Eisenberg ~1976!, Demsetz ~1983!, Demsetz and Lehn ~1985!, Shleifer and Vishny...If you regard to get a liberal essay, order it on our website: Ordercustompaper.com

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