Morck, Randall; Wolfenzon, Daniel; Yeung, Bernard - National Bureau of Economic Research (NBER) - 2004
Around the world, large corporations usually have controlling owners, who are usually very wealthy families. Outside … end up controlling considerable proportions of their countries'' economies. Three points emerge. First, at the firm level … agency and entrenchment problem simultaneously. In addition, controlling shareholders can divert corporate resources for …