ABSTRACT
We study corporate control tracing controlling shareholders for thousands of listed firms from 127 countries over 2004â2012. Government and family control is pervasive in civilâlaw countries. Blocks are commonplace, but less so in commonâlaw countries. These patterns apply to large, medium, and small firms. In contrast, the development â control nexus is heterogeneous; strong for large but absent for small firms. Control correlates strongly with shareholder protection, the stringency of employment contracts and unions power. Conversely, the correlations with creditor rights, legal formalism, and entry regulation appear weak. These patterns support both legal origin and political theories of financial development.
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