Journal of Institutional and Theoretical Economics 169, 160–183, 2013.
This paper takes as its foundation four central facts. First, control blocks in corporations with public shareholders are pervasive. Only a handful of countries have capital markets that are dominated by companies whose control is in the public float (the evidence is summarized in Gilson, 2006). Second, control blocks do not exist, as the Law and Finance literature (La Porta et al., 1998) would have it, only in consequence of weak corporate governance law.
Date of Authorship for this Version
Schwartz, Alan and Gilson, Ronald J., "Constraints on Private Benefits of Control: Ex Ante Control Mechanisms versus Ex Post Transaction Review" (2013). Faculty Scholarship Series. Paper 4857.