Corporate Governance and Control
128 Pages Posted: 31 Oct 2002
Date Written: October 2002
Corporate governance is concerned with the resolution of collective action problems among dispersed investors and the reconciliation of conflicts of interest between various corporate claimholders. In this survey we review the theoretical and empirical research on the main mechanisms of corporate control, discuss the main legal and regulatory institutions in different countries, and examine the comparative corporate governance literature. A fundamental dilemma of corporate governance emerges from this overview: large shareholder intervention needs to be regulated to guarantee better small investor protection; but this may increase managerial discretion and scope for abuse. Alternative methods of limiting abuse have yet to be proven effective.
Keywords: Corporate governance, ownership, takeovers, block holders, boards
JEL Classification: G32, G34
Suggested Citation: Suggested Citation