Capital Markets and Corporate Governance in Japan, Germany, and the United States: Organizational Response to Market Inefficiencies

By Helmut M. Dietl | Go to book overview

1

THEORETICAL FRAMEWORK
The objective of this chapter is to develop a theoretical framework which explains the prevailing variety of organizational modes of capital allocation and corporate governance in terms of comparative organizational efficiency. The chapter is divided under six main headings:
1 introducing the investment relation as the basic unit of analysis
2 defining investment relation costs as the comparative efficiency criterion
3 identifying of the relevant dimensions of an investment relation
4 classifying of alternative regulatory environments
5 characterizing of alternative organizational modes of capital allocation and corporate governance
6 matching of each type of investment relation in an efficiency discriminating manner with a particular organizational mode of capital allocation and corporate governance.

INVESTMENT RELATION

The investment relation is the basic unit of analysis. It consists of at least two parties: an investor who provides capital and a firm which uses capital for investment purposes. In exchange for the provision of capital, investors receive contingent ownership and decision rights. In states of solvency, for example, the suppliers of equity will retain the decision rights over the firm’s assets while the suppliers of debt will receive pre-specified interest and principal payments. In case of default, on the other hand, the decision rights over the firms remaining assets will be transferred from the suppliers of equity to the suppliers of debt.

-4-

Notes for this page

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items
Notes
Cite this page

Cited page

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited page

Bookmark this page
Capital Markets and Corporate Governance in Japan, Germany, and the United States: Organizational Response to Market Inefficiencies
Table of contents

Table of contents

  • Title Page iii
  • Contents v
  • Illustrations vi
  • Acknowledgements viii
  • Introduction 1
  • 1 - Theoretical Framework 4
  • 2 - Empirical Evidence from Germany, Japan and the United States 111
  • Summary 161
  • Appendices 166
  • Notes 170
  • Bibliography 182
  • Name Index 190
  • Subject Index 193
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this book

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
Items saved from this book
  • Bookmarks
  • Highlights & Notes
  • Citations
/ 200

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.