Why do blockholders create ownership pyramids

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1. Are institutional investors such as banks or investment funds expected to be good monitors? Explain why or why not.

2. Why do blockholders create ownership pyramids?

3. Discuss two explanations for why founding families hold concentrated ownership stakes in a publicly traded ?rm. Describe two potential distortions that such holdings may introduce in ?rm behavior.

Reference no: EM13893888

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