Investor Protection and Asset Pricing

@inproceedings{Albuquerque2004InvestorPA,
  title={Investor Protection and Asset Pricing},
  author={Rui Albuquerque and Neng Wang},
  year={2004}
}
Corporations in most countries are run by controlling shareholders, who have substantially smaller cash flow rights than their control rights in the firm. This separation of ownership and control allows the controlling shareholders to pursue private benefits at the cost of outside minority investors by diverting resources away from the firm and distorting… CONTINUE READING