Question
2. Corporate ownership varies globally. Unlike the United States, where individuals have historically held majority ownership of public companies, in countries such as Germany, banks
2. Corporate ownership varies globally. Unlike the United States, where individuals have historically held majority ownership of public companies, in countries such as Germany, banks or other large financial institutions own most of the stock in public companies. Noting the difference in ownership structure you think agency problems are likely to be more or less severe in these countries than in the United States? Why? In recent years, large financial institutions such as mutual funds have become dominant owners of stock in the United States. These institutions are becoming more active in corporate affairs. What are the implications of this trend for stockholders and companies?
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