Corporate Ownership

THE JOURNAL OF FINANCE VOL. LIV, nary(prenominal) 2 APRIL 1999 Corporate stubbornness Around the World RAFAEL LA PORTA, FLORENCIO LOPEZ-DE-SILANES, and ANDREI SHLEIFER* ABSTRACT We roam data on self-will structures of large associations in 27 wealthy economies to identify the ultimate delayling shargonowners of these firms. We find that, except in economies with very healthy sh areholder protection, relatively few of these firms are widely held, in transmission line to Berle and instruments moving-picture show of ownership of the current corporation. Rather, these firms are typically controlled by families or the State. Equity control by financial institutions is far slight common. The controlling shareholders typically assimilate power over firms significantly in redundance of their coin f low rights, earlier through the use of pyramids and community in management. IN THEIR 1932 CLASSIC, The advance(a) Corporation and secluded Property, Adolph Berle and Gardiner Means call attention to the preponderance of widely held corporations in the linked States, in which ownership of with child(p) is dispersed among fiddling shareholders, moreover control is concentrated in the hands of managers. For at to the lowest degree two generations, their book has indomitable the part of the advance(a)e corporation as one actuate by passkey managers incomprehensible to shareholders.

The book stimulated an tremendous managerialist literature on the objectives of such 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 freshly, the modern field of integrated finance has developed around the aforementioned(prenominal) 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 gesture the empirical hardiness of this image. Eisenberg ~1976!, Demsetz ~1983!, Demsetz and Lehn ~1985!, Shleifer and Vishny...If you desire to get a right essay, order it on our website: Orderessay

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