A dispersed structure of ownership can lead to a lack of incentive for owners to control the activity of top managers, leading to a passive attitude in the defense of their interests (Grossmann and Hart 1980; Maug
Based on the studies of many authors like Brickley, Lease and Smith (1988), Kochhar and David (1996), Maug
(1998), Chen, Harford and Li (2007) among others, we identify three principal factors that we estimate the most indicative and influential of institutional behaviours.
As suggested by Maug
and Kahn and High liquidate if a firm's shareholders commit to monitoring management, they trade frequently to maximize their profits from their private information and thus contribute to improve the stock's liquidity.
267 (2005) (measuring the profitability of insider trading across countries); Abraham Ackerman & Ernst Maug
, Insider Trading Legislation and Acquisition Announcements: Do Laws Matter?
Contributions include Admati, Pfleiderer, and Zechner (1994), Bolton and von Thadden (1998), Kahn and Winton (1998), and Maug
(1998), who all focus exclusively on shareholders' collective action problem.
Ingolf Dittmann, Erasmus University, and Ernst Maug
and Oliver Spalt, University of Mannheim, "Sticks or Carrots?
Harvard Business Review 72 (1994): 128-40; Ernst Maug
, "Large Shareholders as Monitors: Is There a Trade-off Between Liquidity and Control?
Van Deun A, Maug
AK, Salim MA, Das PK, Sarker MR, Daru P, et al.
Contract awarded for Construction of Water Sanitation Facilities (a) 1- Unit/2 Seater at DoA+/-a Rosario ES; (b) 1- Unit/2 Seater at La Suerte ES; (c) 1- Unit/2 Seater at Mapaga ES; (d) 1- Unit/2 Seater at New Maug
ES; (e) 1
, Efficiency and Fairness in Minority Freezeouts:
See Guth & Maug
(2007) for an example of a principal-agent model with effort-incentives.
Diamond (1984), Admati, Pfleiderer and Zechner (1994), Maug
(1998) and Kahn and Winton (1998) provide the theoretical models to explain the context in which blockholders would be motivated to monitor managers.