Sweden has a high degree of separation of ownership from control through pyramids, dualclass shares, and cross-holdings. This increases the potetitia! for private benefits of control. However. Sweden's extralegal institutions—-tax tompliatice and newspaper circulation— are consistent with greater shareholder protection. Using data on Swedish mergers we find limited evidence of shareholder expropriation. Apparently, Sweden's extralegal institutions offset the drawback of weak cotporate governance.
SAMHÄLLSVETENSKAP -- Ekonomi och näringsliv -- Nationalekonomi (hsv//swe)
SOCIAL SCIENCES -- Economics and Business -- Economics (hsv//eng)