Laws versus Contracts: Shareholder Protections and Ownership Concentration in Brazil, 1890–1950

2008 ◽  
Vol 82 (3) ◽  
pp. 445-473 ◽  
Author(s):  
Aldo Musacchio

This article examines some of the institutional conditions that facilitated the development of equity markets in Brazil. A critical factor was the addition to corporate bylaws of protections for investors, which enabled relatively large corporations in Brazil to attract investors in large numbers. By availing themselves of this strategy, the firms generated a relatively low concentration of ownership before 1910. Archival evidence, such as company statutes and shareholder lists, reveals that the addition of voting rights to their bylaws, particularly maximum-vote provisions and graduated voting scales (which stipulated that less-than-proportional votes increase in parallel with shareholdings), allowed many Brazilian corporations to balance the relative voting power of their small and large investors. In companies that made such arrangements, the concentration of ownership and control was sharply lower than in the average company. Judging by the Brazilian companies examined for this article, it also appears that the concentration of control was significantly lower before 1910 than it is today.

2008 ◽  
Vol 82 (3) ◽  
pp. 445-473 ◽  
Author(s):  
Aldo Musacchio

This article examines some of the institutional conditions that facilitated the development of equity markets in Brazil. A critical factor was the addition to corporate bylaws of protections for investors, which enabled relatively large corporations in Brazil to attract investors in large numbers. By availing themselves of this strategy, the firms generated a relatively low concentration of ownership before 1910. Archival evidence, such as company statutes and shareholder lists, reveals that the addition of voting rights to their bylaws, particularly maximum-vote provisions and graduated voting scales (which stipulated that less-than-proportional votes increase in parallel with shareholdings), allowed many Brazilian corporations to balance the relative voting power of their small and large investors. In companies that made such arrangements, the concentration of ownership and control was sharply lower than in the average company. Judging by the Brazilian companies examined for this article, it also appears that the concentration of control was significantly lower before 1910 than it is today.


2021 ◽  
Vol 15 (1) ◽  
pp. 121
Author(s):  
Anna Paola Micheli ◽  
Carmelo Intrisano ◽  
Anna Maria Calce

This paper analysed the changes in ownership concentration of the Italian financial market and the recourse to dual class model and shareholder agreements by Italian listed companies in the period 2009-2020. The analysis shows that the control market did not show signs in the period that would lead to presume an increase in the contestability of our companies. The attenuation in ownership concentration, highlighted by the reduction in the value of the Shapley-Shubik index, and the increase in the average market participation did not produce an increase in the contestability of Italian listed companies since the high concentration and limited contestability of control continue to characterize their ownership structures. Findings also show less recourse by the Italian companies to the instruments of separation between ownership and control in the considered period. The reduction in the number of companies that resort to the issue of shares without voting rights and the shareholders' agreements is also reflected in the lower incidence of the capitalization of these companies compared to the market capitalization.


Author(s):  
Prong Kongsubto ◽  
Sirarat Kongwudthiti

Abstract Organic solderability preservatives (OSPs) pad is one of the pad finishing technologies where Cu pad is coated with a thin film of an organic material to protect Cu from oxidation during storage and many processes in IC manufacturing. Thickness of OSP film is a critical factor that we have to consider and control in order to achieve desirable joint strength. Until now, no non-destructive technique has been proposed to measure OSP thickness on substrate. This paper reports about the development of EDS technique for estimating OSP thickness, starting with determination of the EDS parameter followed by establishing the correlation between C/Cu ratio and OSP thickness and, finally, evaluating the accuracy of the EDS technique for OSP thickness measurement. EDS quantitative analysis was proved that it can be utilized for OSP thickness estimation.


2000 ◽  
Vol 10 (3) ◽  
pp. 725-733 ◽  
Author(s):  
Timothy L. Fort

Abstract:This paper is a response to a recent colloquy among Professors David Messick, Donna Wold, and Edwin Harman. I defend Messick’s naturalist methodology, which suggests that people inherently categorize others and act altruistically toward certain people in a given person’s in-group. This paper suggests that an anthropological reason for this grouping tendency is a limited human neural ability to process large numbers of relationships. But because human beings also have the ability to modify, to some extent, their nature, corporate law can organize small mediating institutions within large corporations in order to take ethical advantage of this grouping tendency. Within a corporate law taking seriously a mediating institution’s formulation of business communities, a virtue ethics approach can be integrated with a naturalist approach in a way that fosters ethical business behavior while mitigating the dangers of ingrouping tendencies.


2010 ◽  
Vol 7 (3) ◽  
pp. 105-123 ◽  
Author(s):  
Gloria Y. Tian

Using data of Canadian corporations in 1994 and 2003, this study analyzes whether controlling shareholders of corporate pyramid groups, with substantial divergences in ownership and control, negatively or positively impact firm performance. We find some evidence that the combination of ownership concentration and pyramidal structure would lead to inferior firm performance and valuation, but little evidence concerning tunneling within groups. We argue the robust legal environment in Canada that encourages shareholder value maximization could mitigate the negative impact of control enhancing mechanisms on minority public investors.


2008 ◽  
Vol 6 (2) ◽  
pp. 312-333 ◽  
Author(s):  
Silvia Rigamonti

This article examines the evolution of ownership of cash flow rights and control of voting rights of firms that went public in Italy over the period 1985-2005. At the IPO, the ownership structure does not evolve towards a dispersed one. Even 10 years after the flotation, the initial ultimate shareholder retains the majority of voting rights. Though control is valuable, original owners do not systematically set up structures that dissociate cash flow from voting rights.


1961 ◽  
Vol 52 (3) ◽  
pp. 577-587 ◽  
Author(s):  
A. N. Kalea ◽  
J. P. Kulshreshtha

The larvae of the Melolonthid beetle, Lachnosterna. consanguinea (Blanch.), have been found to be very destructive to sugarcane in the Dalmianagar area in Bihar, India, since 1956 when they were first recorded there. The pest has since been found to occur in serious numbers in certain adjoining areas and also in Bihta in Patna district. Damage is done by the larvae by feeding on cane roots. Heavily infested cane clumps dry out completely and in severe infestations as much as 80 per cent, of the crop is lost. The infestation occurs only on light sandy soils; crops on clay soils are not affected. The February-planted crop suffers more seriously than that planted in October. The adults have not so far been observed doing any damage to sugarcane.The emergence of adults starts in the last week of April, but a rush of emergence occurs only after the first shower of rain. The adults are nocturnal in habit and feed on leaves of certain bushes and trees during the night. They hide themselves in loose moist soil in day-time. Mating takes place after dusk during the flight season, and eggs are laid in the soil at a depth of 5 to 10 cm. The incubation period varies from 8 to 10 days. The young larvae move to cane roots after some initial feeding on grass roots. They are fully grown in 8 to 10 weeks' time when they move deeper into the soil and pupate in earthen cells at a depth of 0·3 to 1·5 m. The pupal period varies from 12 to 16 days and the pest overwinters in the adult stage. There is only one brood a year.The adults are active at night and are attracted to artificial light and can be destroyed in large numbers with the help of light-traps. Collections from the foliage of trees and shrubs at night is an easier and better method of destruction. Trials with insecticides applied as sprays to the foliage of shrubs in cages to which adults were immediately introduced showed that a suspension containing 0·5 per cent. DDT was effective and was superior to one of BHC.Replicated field trials carried out for the control of the larvae with various insecticides showed that BHG applied to the soil in a dust at the rate of 22·4 Ib. toxicant per acre was the most effective. This treatment, when applied-at planting time (February) had an adverse effect on germination; this effect was not observed when the application was made at the end of May. In subsequent replicated experiments, when BHC in a dust was applied in two instalments at the rate of 10 Ib. per acre at the end of May at the time of the rush of adult emergence, and in July, respectively, much better results were obtained without any adverse effect on the crop. BHC and other insecticides applied to the soil in sprays at 10 Ib. per acre at the end of May were ineffective.Amongst varieties of cane grown at the Bank Farm, Dalmianagar, Co.935 and B.O.3 showed a greater tolerance of injury by the larvae than the others.A Scoliid, Scolia aureipennis Lep., was observed to parasitise the grubs during September. The rate of parasitisation was only about 5 per cent.A disease caused by a fungus, Metarrhizium. anisopliae, was also observed to occur in the adults. Affected beetles died within 4 to 6 days.The common Indian toad (Bufo melanostictus) and the gecko (Gecko gecko) were seen preying on the adults in the evening when these were active. A number of birds, particularly the Indian crow (Corvus splendens) and mynah (Acridotheres tristis), also feed on the larvae when these are exposed during tillage operations.


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