CORPORATE GOVERNANCE PRACTICES AND STOCK MARKETS
DORIN DOBRISANABSTRACT. Ownership concentration varies systematically with respect to certain firm-specific economic variables and country characteristics in ways that are consistent with value maximization and predictions of agency theory. Markets for high-growth stocks offer venture capitalists a valuable exit opportunity for their investments; this allows them to re-invest their money in other start-up companies and may spur the rate of new business creation and technological innovation.