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Shareholder versus Stakeholder Protection and Interest-Group Politics

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  • Christian At

Abstract

This paper develops a framework for analyzing how lobbying by interest groups affects the levels of both shareholder and stakeholder protection. We find that lobbying may lead the equilibrium level of shareholder protection to be suboptimal; the new result is that it may be too high, not just too low. We show that deregulation of lobbying increases the suboptimality of protection levels, while ownership concentration contributes to reduce it.

Suggested Citation

  • Christian At, 2015. "Shareholder versus Stakeholder Protection and Interest-Group Politics," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 171(3), pages 478-492, September.
    • Handle: RePEc:mhr:jinste:urn:sici:0932-4569(201509)171:3_478:svspai_2.0.tx_2-a
    DOI: 10.1628/093245613X14285667557513
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • K22 - Law and Economics - - Regulation and Business Law - - - Business and Securities Law

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