We develop a model to illustrate that controlling shareholders choose the level of investor protection that maximizes … their own interests. Controlling shareholders in companies with complicated control structures can easily extract private …, controlling shareholders in companies with valuable growth opportunities are willing to improve investor protection so that they …

and the economy, we link theory to method and explore three techniques for analysing legal institutions empirically …

regulatory protection offered to outside investors against the abuse and expropriation by the controlling shareholders, (ii …

activities. Active shareholders monitor managers, but can shirk on their monitoring, to the detriment of minority (passive … new firms and by the in-house investment of incumbent firms. Firms' managers engage in tunneling and empire building …) shareholders. The analysis reveals that these conflicts among firms' stakeholders inhibit the entry of new firms, thereby …