Munich Personal RePEc Archive

The puzzle of corporate control

Alves, Paulo (2012): The puzzle of corporate control. Published in: International Research Journal of Finance and Economics No. 99 (2012): pp. 53-63.

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Abstract

In this research paper the main forces that influence different kinds of corporate control of the largest firms by country are evaluated. Firms controlled by individuals, Government, miscellaneous investors or widely held, exist under different circumstances. While firms controlled by individuals are small, proliferate on civil-law based countries with low levels of economic freedom, firms controlled by Governments multiply under low standards of disclosure, undeveloped financial markets and non catholic environments. On the other hand, the presence of miscellaneous investors is more frequent when stocks are glamorous and small wherein the smaller shareholder can easily use their limited resources and monitoring the management/larger shareholder. Finally, widely held firms are large and are stimulated by an economic freedom behavior.

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