Were The Good Old Days That Good?

eTHE JOURNAL OF FINANCE VOL. LIV, NO. 2 APRIL 1999 Were the Good ancient Days That Good? Changes in managerial Stock will power Since the Great Depression CLIFFORD G. HOLDERNESS, RANDALL S. KROSZNER, and DENNIS P. SHEEHAN* ABSTRACT We document that willpower by officers and directors of in the public eye(predicate)ly traded firms is on average higher at once than earlier in the century. Managerial will power has come up from 13 portion for the universe of exchange-listed corporations in 1935, the earliest class for which such data exist, to 21 percent in 1995. We attempt in detail the robustness of the outgrowth and explore hypotheses to exempt it. Higher managerial ownership has non substituted for alternative corporate organisation mechanisms. Lower volatility and great hedging opportunities associated with the development of monetary markets appear to be grievous factors explaining the increase in managerial ownership. THE SEPARATION OF OWNERSHIP AND w atch of firms has generated an enormous literature since the upshot of Berle and instrument The Modern mint and Private Property ~1932!. In both academic and public policy circles, there has been often debate about the consequences of absentee ownership ~Veblen ~1923!! and what policies should be undertaken to remedy the situation.

Berle and Means warn that the separation of ownership and control destroys the very nates on which the economic establish of the past three centuries has be and assert that the @d#ispersion in the ownership of separate enterprises . . . has already proceeded far, it is rapidly increasing, and appears to be an ineluctable development of the modern co! r- * Holderness is from capital of Massachusetts College, Kroszner is from the University of Chicago, and Sheehan is from Pennsylvania State University. We thank Cynthia Alexander, Harold Demsetz, Franklin Edwards, Laura Field, Wayne Guay, Charles Hadlock, Gordon Hanka, Kenneth Lehn, Claudio Loderer, Hamid Mehran, Peter Tufano, René Stulz, Robert Vishny,...If you want to dismount a full essay, set out it on our website: BestEssayCheap.com

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