Mark J. Joe
- Published in print:
- 2006
- Published Online:
- October 2011
- ISBN:
- 9780199205301
- eISBN:
- 9780191695612
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199205301.003.0007
- Subject:
- Business and Management, Corporate Governance and Accountability, Business History
This chapter presents a statistical inquiry to test the political hypothesis that strong social democracies widen the natural gap between managers and distant stockholders, and impede firms from ...
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This chapter presents a statistical inquiry to test the political hypothesis that strong social democracies widen the natural gap between managers and distant stockholders, and impede firms from developing tools that would close that gap. By arraying nations on a left-to-right political scale, and then arranging them on a highly-concentrated to highly diffuse ownership scale, the scales correlate powerfully. The political explanation accounts for the variation in ownership concentration in the world's richest nations.Less
This chapter presents a statistical inquiry to test the political hypothesis that strong social democracies widen the natural gap between managers and distant stockholders, and impede firms from developing tools that would close that gap. By arraying nations on a left-to-right political scale, and then arranging them on a highly-concentrated to highly diffuse ownership scale, the scales correlate powerfully. The political explanation accounts for the variation in ownership concentration in the world's richest nations.
