Agency conflicts, ownership concentration, and legal shareholder protection Export

@article{citeulike:3328742, abstract = {This paper analyzes the interaction between legal shareholder protection, managerial incentives, monitoring, and ownership concentration. Legal protection affects the expropriation of shareholders and the blockholder's incentives to monitor. Because monitoring weakens managerial incentives, both effects jointly determine the relationship between legal protection and ownership concentration. When legal protection facilitates monitoring better laws strengthen the monitoring incentives, and ownership concentration and legal protection are inversely related. By contrast, when legal protection and monitoring are substitutes better laws weaken the monitoring incentives, and the relationship between legal protection and ownership concentration is non-monotone. This holds irrespective of whether or not the large shareholder can reap private benefits. Moreover, better legal protection may exacerbate rather than alleviate the conflict of interest between large and small shareholders.}, author = {Burkart, Mike and Panunzi, Fausto}, citeulike-article-id = {3328742}, journal = {Journal of Financial Intermediation}, keywords = {insider-trading}, month = {January}, number = {1}, pages = {1--31}, posted-at = {2008-09-24 10:34:38}, priority = {2}, title = {Agency conflicts, ownership concentration, and legal shareholder protection}, volume = {15}, year = {2006} }

TY - JOUR ID - citeulike:3328742 L3 - citeulike-article-id:3328742 N2 - This paper analyzes the interaction between legal shareholder protection, managerial incentives, monitoring, and ownership concentration. Legal protection affects the expropriation of shareholders and the blockholder's incentives to monitor. Because monitoring weakens managerial incentives, both effects jointly determine the relationship between legal protection and ownership concentration. When legal protection facilitates monitoring better laws strengthen the monitoring incentives, and ownership concentration and legal protection are inversely related. By contrast, when legal protection and monitoring are substitutes better laws weaken the monitoring incentives, and the relationship between legal protection and ownership concentration is non-monotone. This holds irrespective of whether or not the large shareholder can reap private benefits. Moreover, better legal protection may exacerbate rather than alleviate the conflict of interest between large and small shareholders. IS - 1 JF - Journal of Financial Intermediation EP - 31 TI - Agency conflicts, ownership concentration, and legal shareholder protection VL - 15 SP - 1 KW - insider-trading AU - Burkart, Mike AU - Panunzi, Fausto PY - 2006/01// ER -