Corporate governance and principal-principal conflicts
Abstract
This chapter discusses the problem of principal–principal (PP) conflicts between minority shareholders and controlling shareholders. It shows that these conflicts lead to major governance problems all over the world. It first considers the forerunners of PP conflicts, and then studies the possible remedies in the form of external and internal governance mechanisms. The chapter also emphasizes the relevant organizational consequences of PP conflicts in four crucial areas: tunneling/self-dealing, executive compensation, managerial talent, and mergers and acquisitions.
Citation
Peng, M. and Sauerwald, S. 2013. Corporate governance and principal-principal conflicts, in Wright, M. et al (eds), The Oxford Handbook of Corporate Governance. Oxford, UK: Oxford University Press.
Source Title
The Oxford Handbook of Corporate Governance
ISBN
School
School of Management
Collection
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