Corporate Governance, Monitoring and the Ownership Structure of the Firm: an Overview
Paolo Pasquariello
New York University-Stern School of Business
Abstract：This paper provides an overview of the most recent attempts by the literature to explain the relationship between Corporate Control considerations, monitoring costs and the ownership structure resulting from a public offering. The empirical evidence currently available is analyzed. Two main theoretical paradigm as are identified and described. The “normative” approach tries to specify the market mechanism by which a previously privately held company becomes public as the device to cope with heterogeneity of investors, market-segmentation and the relationship between informed and uninformed trading, departing from the more general competitive Walrasian-type offering process. The “monitoring” approach, while maintaining the more traditional competitive structure for the capital markets, faces more explicitly the issue of corporate control, and the trade-off between monitoring, liquidity and risk-sharing as the main determinant of a large investor’s decision about whether to “raid” a company or not. The main results of the literature are explored and directions for future research are suggested. vb人事管理系统论文+源码+系统测试+流程图
1. Introduction
A wave of privatizations in Western and Eastern Europe in the last few years stimulated a new and intense effort in Finance and Economics in the attempt to enhance the understanding of the mechanisms and the dynamics by which entrepreneurs, venture capitalists, mature firms and governmental institutions and companies become public.
Does the seller maximize his/her revenues? Does the selected market mechanism and ownership structure maximize the ex-ante value of the firm? Is the resulting amount of monitoring exercised over management traditionally not fully aligned with the interests of the existing shareholders of the firm sufficient to reduce or eliminate the social and individual loss deriving from sub-optimal decision making and perquisites’ consumption? 东莞出口企业应收账款问题现状及对策+文献综述+开题报告+任务书
The most recent literature on the relationship between Corporate Governance considerations and the process by which a corporation, a division or sub-unit of it, eventually goes public tries to answer these and other compelling questions arising from the still scarce and sometimes anecdotal empirical evidence on public and private placements.
This paper represents an attempt to identify a unified framework to evaluate the main contributions to our knowledge of these phenomena, to describe common pillars and contrasting assumptions, and to suggest potential extensions to the current research mainstream.
The following section describes the most significant empirical facts available on public offerings and private placements of privately held firms. Section 4 extends the analysis to the major theoretical constructs originating from the pioneering works of Grossman and Hart (1980) and Kyle and Vila (1991). The last section summarizes the findings and suggests several directions for future research..2388