Home > Library > Better corporate ownership governance through worldwide convergence toward Berle-Means stock ownership dispersion
Author Andy Yeh Alpha
We design a model of corporate ownership and control to assess Berle-Means convergence toward diffuse incumbent stock ownership. Berle-Means convergence occurs when legal institutions for investor protection outweigh in relative importance the firm-specific protection of shareholder rights. While these arrangements are complementary sources of investor protection, Berle-Means convergence draws the corporate outcome to the socially optimal quality of corporate governance. High ownership concentration creates perverse incentives for inside blockholders to steer major business decisions to the detriment of both minority shareholders and outside blockholders. Our analysis sheds skeptical light on high insider stock ownership with managerial entrenchment and rent protection.
Description:
We design a model of corporate ownership and control to assess Berle-Means convergence toward diffuse incumbent stock ownership. Berle-Means convergence occurs when legal institutions for investor protection outweigh in relative importance the firm-specific protection of shareholder rights. While these arrangements are complementary sources of investor protection, Berle-Means convergence draws the corporate outcome to the socially optimal quality of corporate governance. High ownership concentration creates perverse incentives for inside blockholders to steer major business decisions to the detriment of both minority shareholders and outside blockholders. Our analysis sheds skeptical light on high insider stock ownership with managerial entrenchment and rent protection.
This analytic ebook cannot constitute any form of financial advice, analyst opinion, recommendation, or endorsement. We refrain from engaging in financial advisory services, and we seek to offer our analytic insights into the latest economic trends, stock market topics, investment memes, and other financial issues. Our proprietary alpha investment algorithmic system helps enrich our AYA fintech network platform as a new social community for stock market investors: https://ayafintech.network.
We share and circulate these informative posts and essays with hyperlinks through our blogs, podcasts, emails, social media channels, and patent specifications. Our goal is to help promote better financial literacy, inclusion, and freedom of the global general public. While we make a conscious effort to optimize our global reach, this optimization retains our current focus on the American stock market.
This ebook shares new economic insights, investment memes, and stock portfolio strategies through both blog posts and patent specifications on our AYA fintech network platform. AYA fintech network platform is every investor's social toolkit for profitable investment management. We can help empower stock market investors through technology, education, and social integration.
2019-12-22 08:30:00 Sunday ET

European Commission President Ursula von der Leyen now protects the European circular economy and green growth from 2020 to 2050. The new circular economy r
2023-09-14 09:28:00 Thursday ET

Colin Camerer, George Loewenstein, and Matthew Rabin assess the recent advances in the behavioral economic science. Colin Camerer, George Loewenstei
2019-12-10 09:30:00 Tuesday ET

Federal Reserve institutes the third interest rate cut with a rare pause signal. The Federal Open Market Committee (FOMC) reduces the benchmark interest rat
2019-12-28 09:36:00 Saturday ET

Global debt surges to $250 trillion in the fiscal year 2019. The International Institute of Finance analytic report shows that both China and the U.S. accou
2018-03-19 10:37:00 Monday ET

Uber's autonomous car causes the first known pedestrian fatality from a driverless vehicle and thus sets off the alarm bell for artificial intelligence.
2018-09-13 19:38:00 Thursday ET

Bill Gates shares with Mark Zuckerberg his prior personal experiences of testifying on behalf of Microsoft before U.S. Congress. Both drop out of Harvard to