Two hypotheses about the role of ownership in corporate performance are presented. The first rests on the view that access to finance is the major problem to be solved by the firm through a system of corporate governance. Ownership is of interest because it affects the financing problem and the...

Surveys of corporate risk management document that selective hedging, where managers incorporate their market views into firms’ hedging programs, is widespread in the U.S. and other countries. Stulz (1996) argues that selective hedging could enhance the value of firms that possess an...

Managers' incentives may conflict with those of shareholders or creditors, particularly at leveraged, opaque banks. Bankers may abuse their control rights to give themselves excessive salaries, favored access to credit, or to take excessive risks that benefit themselves at the expense of...