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A framework is proposed for analyzing the structure of a diversified business group, according to the function of firms in the group. The areas are: cash sources, financial firms (that facilitate cash flows among firms), firms allowing to keep property and control of the group, high expected...
Persistent link: https://www.econbiz.de/10014185828
The economic model of corporate law could, with a few simple moves, be seen as potentially having cultural limits. Or, better put, the economic model works well in the United States because not much impedes Coasean-style re-bargaining among the corporate players. Begin with the economic model...
Persistent link: https://www.econbiz.de/10014112812
The problem of managerial agency costs dominates debates in corporate law. Many leading scholars advocate reforms that would reduce agency costs by forcing firms to allocate more control to shareholders. Such proposals disregard the costs that shareholders avoid by delegating control to managers...
Persistent link: https://www.econbiz.de/10012972091
Partial ownership of stock in multiple competing firms is an important scholarly and policy topic in both corporate and antitrust law. Until now, the discussion has focused on ownership. This essay shifts the debate from a focus on common ownership to a focus on common control. No prior work has...
Persistent link: https://www.econbiz.de/10013236520
Using average performance measures – as the literature does - to investigate the relation between ownership structure and performance suffers from severe drawbacks. We propose a marginal Tobin's q and argue for its superiority
Persistent link: https://www.econbiz.de/10013106460
I examine whether the Securities and Exchange Commission (SEC) in the US is a learning organization (i.e., one that is capable of learning and adaptation to the dynamic nature of the securities markets – the subject of the SEC's regulatory oversight). Using the treatment of public corporate...
Persistent link: https://www.econbiz.de/10013068598
This paper investigates the relationship between cross ownership, sales delegation and loan commitment. We find that under sales delegation, a higher degree of cross ownership decreases the optimal bank loan interest rate, which is beneficial to the firm profits. However, cross ownership reduces...
Persistent link: https://www.econbiz.de/10014238474
Horizontal shareholding exists when significant shareholders have stock in horizontal competitors. (It is often imprecisely called "common shareholding," but that term can also apply when shareholders own stock in two noncompeting corporations. It differs from "cross-shareholding," which...
Persistent link: https://www.econbiz.de/10011685455
This Article shows that new economic proofs and empirical evidence provide powerful confirmation that, even when horizontal shareholders individually have minority stakes, horizontal shareholding in concentrated markets often has anticompetitive effects. The new economic proofs show that,...
Persistent link: https://www.econbiz.de/10011810808
Horizontal shareholdings exist when a common set of investors own significant shares in corporations that are horizontal competitors in a product market. Economic models show that substantial horizontal shareholdings are likely to anticompetitively raise prices when the owned businesses compete...
Persistent link: https://www.econbiz.de/10013004193