The Governance of Canadian Traded Firms: An Analysis of the Ultimate Ownership Structure
48 Pages Posted: 16 Oct 2003
Date Written: April 2003
We examine the ownership structure of 1121 Canadian listed firms. We analyze their direct and ultimate ownership and control, and other corporate features. We contrast our findings to those reported in recent research for East Asian and Western European firms. We find that ownership and control are relatively concentrated in Canada. The separation of control from ownership is pronounced in Canada. To shed more light on the "puzzling" Canadian corporate governance, we contrast the governance features of firms headquartered in Quebec (QUBFs) against those of firms in the rest of Canada (ROCFs). We find that QUBFs display more ownership and control concentration, more pronounced family and government control, and more pronounced use of pyramidal and multiple class shares than ROCFs. Yet, no distinguishable differences are reported with respect to the deviation between control and ownership.
Keywords: Corporate Governance, ultimate ownership, divergence of cash flow right and control right
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