Journal ArticleDOI
The separation of ownership and control in east asian corporations
TLDR
The authors examined the separation of ownership and control for 2,980 corporations in nine East Asian countries and found that voting rights frequently exceed cash-ow rights via pyramid structures and cross-holdings.About:
This article is published in Journal of Financial Economics.The article was published on 2000-01-01. It has received 4195 citations till now.read more
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Book ChapterDOI
China's Financial System: Past, Present, and Future *
Abstract: We examine and compare the role of China’s financial system in supporting the growth of firms and the economy with that in other countries, and explore directions of future development. First, we find that the current financial system is dominated by a large but inefficient banking sector, and reducing the amount of non-performing loans among the major banks to normal levels is the most important objective for reforming the financial system in the short run. Second, despite the fast growth of the stock market, its role of resource allocation in the economy has been both limited and ineffective. Further development of China’s financial markets is the most important long-term objective. Third, we find that the most successful part of the financial system, in terms of supporting the growth of the overall economy, is a non-standard sector that consists of alternative financing channels, governance mechanisms, coalitions, and institutions. This sector should co-exist with banking and markets in the future in order to continue to support the growth of the Hybrid Sector (non-state, non-listed firms). Finally, in order to sustain stable economic growth, China should aim to prevent and halt damaging financial crises, including a banking sector crisis, a real estate or stock market crash, and a “twin crisis” in the currency market and banking sector.
Journal ArticleDOI
Government Control of Privatized Firms
TL;DR: In this article, the change in government control of privatized firms in OECD countries was studied, and it was found that governments typically transfer ownership rights without relinquishing proportional control and control is commonly retained by leveraging state investments through pyramids, dual-class shares, and golden shares.
Journal ArticleDOI
Boards of directors in family businesses: A literature review and research agenda
TL;DR: A review of the theoretical and empirical literature addressing boards of directors within the unique organizational setting of family businesses is presented in this paper, which aims to improve the understanding of how family involvement in firms affects the roles and behaviours of boards.
Journal ArticleDOI
Family Control of Firms and Industries
Belen Villalonga,Raphael Amit +1 more
TL;DR: In this article, the authors test what explains family control of firms and industries and find that the explanation is largely contingent on the identity of families and individual blockholders, and their families are more likely to retain control when doing so gives the firm a competitive advantage, thereby benefiting all shareholders.
Journal ArticleDOI
Retained state shareholding in Chinese PLCs: Does government ownership always reduce corporate value?
Lihui Tian,Saul Estrin +1 more
TL;DR: Li et al. as discussed by the authors used a large data set of Chinese public listed companies between 1994 and 2004 to generate evidence on how government ownership influences company performance and found the effect of government ownership on corporate value to be non-monotonic.
References
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Journal ArticleDOI
Theory of the firm: Managerial behavior, agency costs and ownership structure
TL;DR: In this article, the authors draw on recent progress in the theory of property rights, agency, and finance to develop a theory of ownership structure for the firm, which casts new light on and has implications for a variety of issues in the professional and popular literature.
Posted Content
Law and Finance
Rafael La Porta,Rafael La Porta,Florencio Lopez de Silanes,Florencio Lopez de Silanes,Andrei Shleifer,Andrei Shleifer,Robert W. Vishny,Robert W. Vishny +7 more
TL;DR: This paper examined legal rules covering protection of corporate shareholders and creditors, the origin of these rules, and the quality of their enforcement in 49 countries and found that common law countries generally have the best, and French civil law countries the worst, legal protections of investors.
Book
The Modern Corporation and Private Property
TL;DR: Weidenbaum and Jensen as mentioned in this paper reviewed the impact of developments not fully anticipated by Berle and Means, such as the rise of the service sector, and the significant role played by institutional investors in the owner/manager equation.
Journal ArticleDOI
The Costs and Benefits of Ownership: A Theory of Vertical and Lateral Integration
Sanford J. Grossman,Oliver Hart +1 more
TL;DR: In this paper, a theory of costly contracts is presented, which emphasizes the contractual rights can by of two types: specific rights and residual rights, and when it is costly to list all specific rights over assets, it may be optimal to let one party purchase all residual rights.
Journal ArticleDOI
Corporate Ownership Around the World
TL;DR: In this paper, the authors use data on ownership structures of large corporations in 27 wealthy economies to identify the ultimate controlling shareholders of these firms, and they find that, except in economies with very good shareholder protection, relatively few firms are widely held, in contrast to Berle and Means's image of ownership of the modern corporation.