Showing papers on "Corporate group published in 1977"

Control Type and the Market for Corporate Control in Large U.S. Corporations

Abstract: IN recent years various attempts have been made to investigate the effect which the separation of ownership from control has on corporate behaviour. Studies by Elliott [4], Holl [8], Kamerschen [9] and Larner [i i] have concluded that this separation has little or no effect on the performance of the firm while studies by Monsen et al. [I 5], Boudreaux [i] and Radice [i 9] suggest that this separation allows owner-controlled firms to report higher and more variable profits than management-controlled firms. In addition to these, Palmer [i 6], [I 7], [i8] has obtained results suggesting that the profits of management-controlled firms are more variable than those of ownercontrolled firms and that only in monopolistic industries are the latter able to report higher profits than the former. This problem is investigated further in the present paper by bringing into the analysis the market for corporate control. This market is concerned with the buying and selling of voting stock and their effects on company control. If the market for corporate control operates efficiently all companies will be constrained to maximize profits and there will be an identity of interests among managers and owners; if not, the separation of ownership from control will have behavioural implications for those management-controlled firms that are able to evade, or are unaffected by, market discipline. It then becomes possible for the management of each of these firms to divert funds away from the owners in the sense that profits are lower than they would be

Theories of the plural society and change in South Africa

Abstract: Theories of the plural society are examined critically and the conclusion is reached that cultural differentiation in society is not, in itself, the major factor accounting for perpetuation of cleavages in plural societies. It is argued that a composite paradigm based on these theories is useful in ordering and combining elements of class, culture and ethnicity in attempting to explain the cleavages in plural societies. The argument is carried further with the suggestion that the popular participation within ruling groups characteristic of plural societies results in a responsiveness in policy to rank‐and‐file corporate group interests. This factor unleashes forces in the political economy which are worthy of being distinguished from conventional notions of class, status and power in homogeneous stratified societies. This factor is given the term ‘popular social communa‐lism’, a process in which class, identity and power are combined and articulated to serve the overall interests of a corporate group. Rec...