Jump to ContentJump to Main Navigation
Show Summary Details
More options …

Review of Law & Economics

Editor-in-Chief: Parisi, Francesco / Engel, Christoph

Ed. by Cooter, Robert D. / Gómez Pomar, Fernando / Kornhauser, Lewis A. / Parchomovsky, Gideon / Franzoni, Luigi Alberto


CiteScore 2018: 0.32

SCImago Journal Rank (SJR) 2018: 0.274
Source Normalized Impact per Paper (SNIP) 2018: 0.493

Online
ISSN
1555-5879
See all formats and pricing
More options …
Volume 8, Issue 2

Issues

Corporate Governance, Corporate and Employment Law, and the Costs of Expropriation

Giulio Ecchia / Martin Gelter / Piero Pasotti
Published Online: 2012-10-31 | DOI: https://doi.org/10.1515/1555-5879.1357

Abstract

We set up a model to study how ownership structure, corporate law and employment law interact to set the incentives that influence the decision by a large shareholder or manager effectively controlling the firm whether to divert resources from minority shareholders and employees. We suggest that agency problems between the controller and other investors and holdup problems between shareholders and employees are connected if the controller bears private costs of expropriating these groups. Corporate law and employment law may therefore sometimes be substitutes to some extent; employees may benefit from stronger corporate law intended to protect minority shareholders. Our model has implications for the domestic and comparative study of corporate governance structures and addresses, among other things, the question of whether large shareholders are better able to commit to a long-term relationship with employees than dispersed shareholders, or whether the separation of ownership and control facilitates long-term relationships with labor.

About the article

Published Online: 2012-10-31


Citation Information: Review of Law & Economics, Volume 8, Issue 2, Pages 457–486, ISSN (Online) 1555-5879, DOI: https://doi.org/10.1515/1555-5879.1357.

Export Citation

©2012 Walter de Gruyter GmbH & Co. KG, Berlin/Boston.Get Permission

Citing Articles

Here you can find all Crossref-listed publications in which this article is cited. If you would like to receive automatic email messages as soon as this article is cited in other publications, simply activate the “Citation Alert” on the top of this page.

[2]
Marianna Belloc and Ugo Pagano
International Review of Law and Economics, 2013, Volume 33, Page 23

Comments (0)

Please log in or register to comment.
Log in