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Unformatted text preview: s enable management to pass on all costs (including agency costs) to customers & shareholders And if not Are they passed on to debt holders & public via bankruptcy?
Savings and loans
Public & Private Pension Schemes & Medical Ins.
Copyright 2013 Questions: Have shareholders traded control for liquidity? Is this a good trade? What about passive investors (index funds)?
Is this a zero sum game? Who are the losers?
In focusing on liquidity have we ignored ‘credit quality’? Who are the final holders? “Greater fools?”
Copyright 2013 More Questions: Does or should “ownership” have accountability?
Who is accountable? To whom? How is accountability exercised? –
– Shareholders (limited liability)
Directors & Managers Discretion Indemnification D + O Insurance Corporation as a legal person
Copyright 2013 More Questions
If institutional legal owners exercise control, who are they accountable to? Drucker: “If ‘som’ is defined as “ownership of the means of production by workers” then the U.S....
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This document was uploaded on 01/28/2014.
- Winter '14