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Research on corporate governance is surveyed, with special attention to the importance of legal protection of investors and of ownership concentration in corporate governance systems around the world. The perspective on corporate governance is a straightforward agency perspective, sometimes referred to as separation of ownership and control. .Hardcopy
Research on corporate governance is surveyed, with special attention to the importance of legal protection of investors and of ownership concentration in corporate governance systems around the world. The perspective on corporate governance is a straightforward agency perspective, sometimes referred to as separation of ownership and control..Hardcopy
We present a model of the effects of legal protection of minority shareholders and of cash-flow ownership by a controlling shareholder on the valuation of firms. We then test this model using a sample of 539 large firms from 27 wealthy economies. Consistent with the model, we find evidence of higher valuation of firms in countries with better protection of minority shareholders and in firms wit…