Yeh, Andrew J.Y.; Lim, Steven; Vos, Ed - Department of Economics, Waikato Management School - 2006
functional convergence. In this view, convergence to any one‐size‐fits‐all solution is a surrender
of self‐regulation to bureaucrats who politicize corporate law. Political debate has its own costs and in
turn … be viewed as a nexus of contracts.
9
Investors who spread their shareholdings across a number of
industries … might find it hard to ‘exit’ the market. Insofar as investors hold well‐diversified portfolios, a
firm‐specific loss can be offset by higher returns to firms that perform well. Thus, investors’ preference
for …