Principal-principal conflicts during crisis

This paper explores principal-principal conflicts in corporate governance during times of economic crisis. We address the question: What external and internal governance mechanisms can best protect minority shareholders? Drawing on 877 publicly listed large corporations with concentrated ownership i...

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Main Authors: Jiang, Y., Peng, Mike
Format: Journal Article
Published: Springer New York LLC 2011
Online Access:http://hdl.handle.net/20.500.11937/49927
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author Jiang, Y.
Peng, Mike
author_facet Jiang, Y.
Peng, Mike
author_sort Jiang, Y.
building Curtin Institutional Repository
collection Online Access
description This paper explores principal-principal conflicts in corporate governance during times of economic crisis. We address the question: What external and internal governance mechanisms can best protect minority shareholders? Drawing on 877 publicly listed large corporations with concentrated ownership in seven Asian countries and regions, we compare different control structures between family firms and non-family firms during crisis. We find that family firms tend to choose certain control structures associated with potential principal-principal conflicts. However, these choices can be constrained by external and internal governance mechanisms. Specifically, legal institutions and presence of multiple blockholders serve as useful external and internal governance mechanisms, respectively, to constrain potential expropriation of minority shareholders.
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format Journal Article
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institution Curtin University Malaysia
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last_indexed 2025-11-14T09:42:37Z
publishDate 2011
publisher Springer New York LLC
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spelling curtin-20.500.11937-499272017-09-13T15:37:02Z Principal-principal conflicts during crisis Jiang, Y. Peng, Mike This paper explores principal-principal conflicts in corporate governance during times of economic crisis. We address the question: What external and internal governance mechanisms can best protect minority shareholders? Drawing on 877 publicly listed large corporations with concentrated ownership in seven Asian countries and regions, we compare different control structures between family firms and non-family firms during crisis. We find that family firms tend to choose certain control structures associated with potential principal-principal conflicts. However, these choices can be constrained by external and internal governance mechanisms. Specifically, legal institutions and presence of multiple blockholders serve as useful external and internal governance mechanisms, respectively, to constrain potential expropriation of minority shareholders. 2011 Journal Article http://hdl.handle.net/20.500.11937/49927 10.1007/s10490-009-9186-8 Springer New York LLC restricted
spellingShingle Jiang, Y.
Peng, Mike
Principal-principal conflicts during crisis
title Principal-principal conflicts during crisis
title_full Principal-principal conflicts during crisis
title_fullStr Principal-principal conflicts during crisis
title_full_unstemmed Principal-principal conflicts during crisis
title_short Principal-principal conflicts during crisis
title_sort principal-principal conflicts during crisis
url http://hdl.handle.net/20.500.11937/49927