Governance: Who controls matters / Bruno Deffains, Nancy and Dominique Demougin -- Corporate governance in new enterprises or: why do some CEOs hold large equity stakes while others are paid through stock options? / Erik E. Lehmann -- Conditional allocation of control rights in venture capital...

This paper provides a rationale for the coexistence of different systems of corporate governance based on the multitude of agency problems typically to be governed within a given firm. Because there are complementarity and substitution relationships between governance instruments, specific...

The paper shows that, as owners accumulate larger stakes and hence become less risk-tolerant, their incentives to monitor management are attenuated because monitoring shifts some of the firm's risk from management to owners. This counterbalances the positive effect which more concentrated...