Mark J. Roe
- Published in print:
- 2004
- Published Online:
- September 2007
- ISBN:
- 9780199269761
- eISBN:
- 9780191710087
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199269761.003.0013
- Subject:
- Business and Management, Corporate Governance and Accountability
This chapter questions the power of law in solving CG problems and maintains that there are societal and political forces that are likely to shape governance structures irrespective of any ...
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This chapter questions the power of law in solving CG problems and maintains that there are societal and political forces that are likely to shape governance structures irrespective of any regulation. In particular, the most common configuration of those forces around the world tends to reinforce concentrated ownership no matter what laws are adopted to protect minority shareholders. The chapter presents a new regression analysis of a wide database on political indicators and ownership concentration in sixteen major countries, which supports the conjecture that political variables, in particular the degree of employment protection and trade union strength, are strong inverse correlates of ownership separation and the diffusion of public companies.Less
This chapter questions the power of law in solving CG problems and maintains that there are societal and political forces that are likely to shape governance structures irrespective of any regulation. In particular, the most common configuration of those forces around the world tends to reinforce concentrated ownership no matter what laws are adopted to protect minority shareholders. The chapter presents a new regression analysis of a wide database on political indicators and ownership concentration in sixteen major countries, which supports the conjecture that political variables, in particular the degree of employment protection and trade union strength, are strong inverse correlates of ownership separation and the diffusion of public companies.
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/9780199205301.003.0024
- Subject:
- Business and Management, Corporate Governance and Accountability, Business History
This chapter outlines the quality of corporate law and its importance. The important precondition to developing modern securities markets, and the industrial, technological wealth that goes with deep ...
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This chapter outlines the quality of corporate law and its importance. The important precondition to developing modern securities markets, and the industrial, technological wealth that goes with deep and vibrant securities markets is a foundation of highly developed corporate and securities law that protect minority stockholders from the rampages of dominant majority stockholders. If corporate law is good enough in technologically-advanced nations, ownership will diffuse away from concentrated ownership into dispersed stock markets.Less
This chapter outlines the quality of corporate law and its importance. The important precondition to developing modern securities markets, and the industrial, technological wealth that goes with deep and vibrant securities markets is a foundation of highly developed corporate and securities law that protect minority stockholders from the rampages of dominant majority stockholders. If corporate law is good enough in technologically-advanced nations, ownership will diffuse away from concentrated ownership into dispersed stock markets.
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/9780199205301.003.0012
- Subject:
- Business and Management, Corporate Governance and Accountability, Business History
Sweden, the world's first social democracy, has protected minority stockholders well, but strong ownership concentration persists and ownership has not yet separated from control. Sweden has been one ...
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Sweden, the world's first social democracy, has protected minority stockholders well, but strong ownership concentration persists and ownership has not yet separated from control. Sweden has been one of the world's strongest social democracies, and leading shareholders there often participate in the political-economic settlements that make production run smoothly. The social democracy thesis better explains Swedish results than alternative theories. When technology and scale economies demand very large industrial firms, and when social democratic pressures demand focused ownership but reduce the number of wealthy people, then tools that facilitate control without vast wealth will be demanded.Less
Sweden, the world's first social democracy, has protected minority stockholders well, but strong ownership concentration persists and ownership has not yet separated from control. Sweden has been one of the world's strongest social democracies, and leading shareholders there often participate in the political-economic settlements that make production run smoothly. The social democracy thesis better explains Swedish results than alternative theories. When technology and scale economies demand very large industrial firms, and when social democratic pressures demand focused ownership but reduce the number of wealthy people, then tools that facilitate control without vast wealth will be demanded.
