Agency Problems and Corporate Ownership Corporate ownership varies around the world.

Historically, individuals have owned the majority of shares in public corporations in the United States. In Germany and Japan, however, banks and other large financial institutions own most of the equity in public corporations. Do you think agency problems are likely to be more or less severe in Germany and Japan than in the United States? Why? In recent years, large financial institutions such as mutual funds and pension funds have been becoming the dominant owners of shares in the United Kingdom, and these institutions are becoming more active in corporate affairs. What are the implications of this trend for agency problems and corporate control?