Document Type
Book Chapter
Publication Date
2007
DOI
https://doi.org/10.1016/S1574-0730(07)02012-9
Abstract
This chapter surveys the theoretical and empirical research on the main mechanisms of corporate law and governance, discusses the main legal and regulatory institutions in different countries, and examines the comparative governance literature. Corporate governance is concerned with the reconciliation of conflicts of interest between various corporate claimholders and the resolution of collective action problems among dispersed investors. A fundamental dilemma of corporate governance emerges from this overview: large shareholder intervention needs to be regulated to guarantee better small investor protection; but this may increase managerial discretion and scope for abuse. Alternative methods of limiting abuse have yet to be proven effective.
Disciplines
Business Organizations Law | Law
Recommended Citation
Marco Becht, Patrick Bolton & Ailsa Röell,
Corporate Law and Governance,
2 Handbook of Law and Economics, A. Mitchell Polinsky & Steven Shavell (Eds.), Elsevier
(2007).
Available at:
https://scholarship.law.columbia.edu/contract_economic_organization/13