This paper contrasts the recent European initiatives on regulating corporate groups with alternative approaches to the phenomenon. In doing so it pays particular regard to the German codified law on corporate groups as the polar opposite to the piecemeal approach favored by E.U. legislation. It...

Although strong empirical evidence suggests that the entrepreneurs in countries with weak legal systems often engage in "tunneling" (expropriating funds that rightfully belong to minority shareholders), the same entrepreneurs may prop up firms using their private resources. Anecdotal evidence...