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Corporate Governance And The Impact Of Controlling Shareholders, Bernard S. Sharfman
Corporate Governance And The Impact Of Controlling Shareholders, Bernard S. Sharfman
Bernard S Sharfman
Good corporate governance practices at a publicly held firm will not necessarily be good practices at a publicly traded firm in which there is a controlling shareholder. This is because board independence, a key concept in structuring appropriate corporate governance practices, has a different meaning when a controlling shareholder is present.
However, identifying whether or not a board is truly independent is just the first step in evaluating the quality of corporate governance at a controlled corporation. After all, a controlling shareholder still has the power to dominate an independent board through his direct voting power and by threats of …