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Corporate ownership takes different forms around the world. In the United States individuals have typically owned public companies either directly through stock ownership, or

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Corporate ownership takes different forms around the world. In the United States individuals have typically owned public companies either directly through stock ownership, or indirectly through investments in pension funds or mutual funds. In contrast, banks, other large financial institutions, and even other companies own most corporate equities. Do you think that these different forms of ownership create different types of principal/agent problems? Does institutional ownership mitigate the risks of moral hazard for managers of publicly owned companies?

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