The Separation of Corporate Ownership and Control : A Reinterpretation of the Evidence of Berle and Means
Berle and Means' classic study of the separation of ownership and control remains authoritative and influential despite having been criticised on various grounds by a number of authors. This paper argues that, firstly, the Berle and Means approach to determining company control implicitly assumes a static framework inappropriate to analysing early twentieth century corporations. Secondly, accepting their approach, their control-type criterion in terms of shareholding concentration is too high and biases their result. Thirdly, the use of the same criterion for all companies fails to recognise the importance of shareholding dispersion and further biases their results. A probabilistic-voting model is described which makes explicit the assumptions behind the concept of factual control. This is applied to the data on 16 companies used by Berle and Means and their classification of them as managerial is shown to be invalid.
|Date of creation:||1984|
|Contact details of provider:|| Postal: CV4 7AL COVENTRY|
Phone: +44 (0) 2476 523202
Fax: +44 (0) 2476 523032
Web page: http://www2.warwick.ac.uk/fac/soc/economics/
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:wrk:warwec:247. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Margaret Nash)
If references are entirely missing, you can add them using this form.