Jump to ContentJump to Main Navigation
Corruption and ReformLessons from America's Economic History$
Users without a subscription are not able to see the full content.

Edward L. Glaeser and Claudia Goldin

Print publication date: 2006

Print ISBN-13: 9780226299570

Published to Chicago Scholarship Online: February 2013

DOI: 10.7208/chicago/9780226299594.001.0001

Show Summary Details
Page of

PRINTED FROM CHICAGO SCHOLARSHIP ONLINE (www.chicago.universitypressscholarship.com). (c) Copyright University of Chicago Press, 2021. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in CHSO for personal use.date: 26 September 2021

Corporate Governance and the Plight of Minority Shareholders in the United States before the Great Depression

Corporate Governance and the Plight of Minority Shareholders in the United States before the Great Depression

Chapter:
(p.125) 4 Corporate Governance and the Plight of Minority Shareholders in the United States before the Great Depression
Source:
Corruption and Reform
Author(s):
Naomi R. Lamoreaux, Jean-Laurent Rosenthal
Publisher:
University of Chicago Press
DOI:10.7208/chicago/9780226299594.003.0005

This chapter discusses the rise of corporations in the U.S. during the late nineteenth century and how their emergence was accompanied by decreased protection of minority shareholder rights. It compares the interest of investors in partnerships and corporations and suggests that the willingness of investors to participate in corporations, as opposed to partnerships, was affected by the extent to which their returns could be expropriated by controlling shareholders. The implication of this model is that organizational problems would only dissuade investors from putting their funds in firms whose expected returns were low.

Keywords:   corporations, U.S., minority shareholder rights, partnerships, controlling shareholders, organizational problems, investors

Chicago Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.

Please, subscribe or login to access full text content.

If you think you should have access to this title, please contact your librarian.

To troubleshoot, please check our FAQs, and if you can't find the answer there, please contact us.