Special Issues Relating to Corporate Governance and Family Control
Control of corporate assets by wealthy families in economies lacking institutional integrity is common. It has negative implications on corporate governance and adverse macroeconomic effects when it extends across a sufficiently large part of the c...
| Main Authors: | , |
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, D.C.
2013
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2004/09/5168113/special-issues-relating-corporate-governance-family-control http://hdl.handle.net/10986/14238 |
| Summary: | Control of corporate assets by wealthy
families in economies lacking institutional integrity is
common. It has negative implications on corporate governance
and adverse macroeconomic effects when it extends across a
sufficiently large part of the country's corporate
sector. The authors consider the reasons why family control
and control pyramids predominate in emerging market
economies and in some industrial economies. They also
discuss the reasons why widely held freestanding firms
predominate in the United States. The authors discuss
policies that countries might adopt to discourage family
control pyramids, but caution that control pyramids are but
one feature of an institutionally deficient economy. A
concerted effort to improve a country's institutions is
needed before diffuse ownership is desirable. |
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