Large Shareholders’ Power and the Quality of Corporate Governance: An Analysis of Brazilian Firms
This paper analyzes the incentives of large shareholders to implement the corporate governance system that favors their interests within a framework of highly concentrated ownership and poor legal protection for investors. A metric for corporate governance based on the fulfillment of non-mandatory rules of good corporate governance is used. System GMM (Generalized Method of Moments) estimates for a balanced panel data of Brazilian firms reveal that the ownership concentration is detrimental to corporate governance quality and the quality of board composition. In accordance with the expropriation effect on principal-principal agency conflicts, by weakening the corporate governance system and board composition, large controlling shareholders may use private benefits of control. As proposed by the substitution effect, in a complementary way, controlling shareholders may renounce strong boards and directly perform management monitoring, mitigating agency conflicts with managers. Finally, the ability of large shareholders other than the main blockholder is not enough to contest his/her power to shape the corporate governance system. The work provides evidence of the prominence of the principal–principal agency problem in an emerging market, by analyzing the effect of ownership concentration over the quality of the corporate governance system, and also that other large non-controlling shareholders are not able to contest the power of the main blockholder.
The aim of this review is to classify research papers on major vs. minor shareholders conflicts and ownership concentration. These issues are closely related both to each other and to manager vs. owner conflicts. Ownership concentration is property distribution among shareholders. Ownership concentration studies consider the following questions: how many major and minor shareholders are there in the company; how many inside shareholders are there and if they are minor or major; in what way concentration influences performance of the company; what costs are associated with major vs. minor shareholders conflicts etc. The bond between ownership concentration and manager vs. owner conflict is due to the fact that often managers are major shareholders along with other owners. In such cases incentive hypothesis, entranchement hypothesis, monitoring and control costs, as well as their effect on performance, should be considered together.
Author presents results of the scientific seminar " Legal regulation of economic activities in China and Russia" (series" Legal aspects of BRICS " ), held in St. Petersburg by the Law Faculty of the Higher School of Economics - St. Petersburg Branch, with a participation of 15 colleagues from 6 universities of China.
For the first time since World War II, the U.S. seem to lose leadership at the multilateral trade talks shifting accents to bilateral and regional trade cooperation. The main reason for the shift is a deadlock at the WTO Doha-round negotiations where the U.S. face opposition of the steadily growing economies of India, China and Brazil.
Торговые переговоры, ГАТТ, ВТО, США, многосторонняя торговая система, ЕС, Япония, ИНДИЯ, КИТАЙ, Бразилия, Дж. Буш-мл., Б. Обама, М. Баррозу, Р. Зеллик, П. Лами, Р. Кирк, Л. да Силва, Карел де Гюхт, АТЭС, НАФТА, АСЕАН, трансатлантическое партнерство, "двадцатка", trade talks, GATT, WTO, U.S., Multilateral Trading System, Eu, Japan, India, China, Brazil, G.-W. Bush, B. Obama, M. Barrozo, R. Zoellick, P. Lamy, R. Kirk, L. da Silva, Karel de Gucht, APEC, NAFTA, ASEAN, Transatlantic Partnership, G 20
One of the most important activities of enterprises today is responsible entrepreneurship. Corporate social responsibility (CSR) activities can help to forge a stronger bond between employees and corporations, can boost morale, and can help both employees and employers feel more connected with the world around them. Moreover, the growing importance of this concept results from the fact that it is perceived as an effective tool for increasing competitiveness, improving the image of the company, or contributing to the generation of higher profits. In today’s world, an active commitment to social responsibility is becoming more common for a company.
CSR and Socially Responsible Investing Strategies in Transitioning and Emerging Economies is an essential reference source that identifies the scale and scope of implementation of CSR and socially responsible investing strategies and standards in companies operating in different transitioning and emerging economies as well as assessing the global effects of these activities. Featuring research on topics such as economic growth, responsible investing, and business ethics, this book is ideally designed for managers, executives, directors, corporate professionals, government officials, industry leaders, academicians, students, and researchers in the fields of international economics, international business, marketing, finance management, and public relations.
The paper examines the structure, governance, and balance sheets of state-controlled banks in Russia, which accounted for over 55 percent of the total assets in the country's banking system in early 2012. The author offers a credible estimate of the size of the country's state banking sector by including banks that are indirectly owned by public organizations. Contrary to some predictions based on the theoretical literature on economic transition, he explains the relatively high profitability and efficiency of Russian state-controlled banks by pointing to their competitive position in such functions as acquisition and disposal of assets on behalf of the government. Also suggested in the paper is a different way of looking at market concentration in Russia (by consolidating the market shares of core state-controlled banks), which produces a picture of a more concentrated market than officially reported. Lastly, one of the author's interesting conclusions is that China provides a better benchmark than the formerly centrally planned economies of Central and Eastern Europe by which to assess the viability of state ownership of banks in Russia and to evaluate the country's banking sector.
The paper examines the principles for the supervision of financial conglomerates proposed by BCBS in the consultative document published in December 2011. Moreover, the article proposes a number of suggestions worked out by the authors within the HSE research team.