Strong shareholders, weak outside investors

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Show simple item record Gutiérrez, María Sáez Lacave, María Isabel Gutierrez Calderon, Maria Isabel 2022-07-15T10:13:30Z 2022-07-15T10:13:30Z 2018-02-02
dc.identifier.bibliographicCitation Gutiérrez, M., & Sáez Lacave, M. (2018). Strong shareholders, weak outside investors. Journal of Corporate Law Studies, 18 (2), pp. 277-309.
dc.identifier.issn 1473-5970
dc.description.abstract We consider the corporate governance challenge of protecting outside investors in listed, controlled firms. We argue that outside investors in European listed firms with controlling shareholders are poorly protected compared to US investors because the distinct European approach to the protection of investors, based on empowering active shareholders rather than shielding passive investors, is not well suited for controlled, listed firms. This approach translates into a lack of definition and development of specific fiduciary duties of the controlling shareholders towards market investors. Moreover, European jurisdictions have developed strong voice rights for active shareholders, which tend to play in favour of controlling shareholders and organised minorities but are not effective for protecting passive investors and limit their exit options. This explains why shareholder protection in European jurisdictions can be considered high, while outside investors’ protection can be considered low at the same time, generating a ‘strong shareholders, weak outside investors’ problem.
dc.description.sponsorship María Gutiérrez acknowledges financial support from FEDER [UNC315-EE-3636], MINECO/FEDER [ECO2015-68715-R] and MINECO [ECO2012-36559]. Maribel Sáez Lacave acknowledges financial support from MINECO [DER 2014-55416-P].
dc.language.iso eng
dc.publisher Taylor & Francis
dc.rights © The authors
dc.rights Atribución-NoComercial 3.0 España
dc.subject.other Corporate governance
dc.subject.other Ownership structure
dc.subject.other Ownership concentration
dc.subject.other Corporation law
dc.subject.other Controlled companies
dc.subject.other Controlling shareholders
dc.subject.other Outside investor protection
dc.subject.other Minority Expropriation
dc.title Strong shareholders, weak outside investors
dc.type article
dc.subject.jel G32
dc.subject.jel G34
dc.subject.jel G35
dc.subject.jel K22.
dc.subject.eciencia Economía
dc.subject.eciencia Empresa
dc.rights.accessRights openAccess
dc.relation.projectID Gobierno de España. ECO2015-68715-R
dc.relation.projectID Gobierno de España. UNC315-EE-3636
dc.relation.projectID Gobierno de España. ECO2012-36559
dc.relation.projectID Gobierno de España. DER 2014-55416-P
dc.type.version acceptedVersion
dc.identifier.publicationfirstpage 277
dc.identifier.publicationissue 2
dc.identifier.publicationlastpage 309
dc.identifier.publicationtitle Journal of Corporate Law Studies
dc.identifier.publicationvolume 18
dc.identifier.uxxi AR/0000021936
dc.contributor.funder Ministerio de Economía y Competitividad (España)
dc.affiliation.dpto UC3M. Departamento de Economía de la Empresa
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