Citation:
LaPorta, Rafael, Florencio Lopez-de-Silanes, and Andrei Shleifer. 1998. “Corporate Ownership Around the World”. Copy at http://www.tinyurl.com/y55ctzr9
Abstract:
We present data on ownership structures of large corporations in 27 wealthy economies, making an effort to identify the ultimate controlling shareholders of these firms. We find that, except in economies with very good shareholder protection, relatively few of these firms are widely held, in contrast to the Berle and Means image of ownership of the modern corporation. Rather, these firms are typically controlled by families or the State. Equity control by financial institutions or other widely held corporations is far less common. The controlling shareholders typically have power over firms significantly in excess of their cash flow rights, primarily through the use of pyramids and participation in management.