instrument for addressing the agency problem between managers and shareholders but also as part of the agency problem itself …

viewed as detrimental to shareholders. We also find that there is commonly a big difference between a state's ability to …

the shareholders of existing companies would not be served by adopting those default arrangements that public officials … between two or more default arrangements and face significant uncertainty as to which one would best serve shareholders, they …

more than is optimal for shareholders and, to camouflage the extraction of rents, executive compensation might be …

these private benefits. A high degree of statutory protection of minority shareholders and high degree of law enforcement …

and business groups are prevalent. When companies have controlling shareholders, institutional investors, as minority … shareholders, can play only a limited role in corporate governance. Moreover, the presence of powerful families who control many … governance, what matters most is not the legal power granted to minority shareholders but rather the absence of conflicts of …

We develop a model where wealthy investors have an incentive to become controlling shareholders because they can earn … additional benefits by expropriating outside shareholders. As a consequence, in countries where minority investor rights are …