15. Agency problems and corporate ownership [LO 1.4] Corporate ownership varies around the world. Historically, individuals have owned the majority of shares in public corporations in Australia. In Germany and Japan, however, banks, other large financial institutions and other companies own most of the shares in public corporations. Do you think agency problems are likely to be more or less severe in Germany and Japan than in Australia? Why? Over the last few decades, large financial institutions such as mutual funds and superannuation funds have been becoming the dominant owners of shares in Australia and these institutions are becoming more active in corporate affairs. What are the implications of this trend for agency problems and corporate control?