ABSTRACT. Chen et al. treat Japenese managerial ownership, firm investment and firm valuation as endogenous to the firm and model them in a three-equation simultaneous equation system. Elsinger et al. see that for the analysis of systemic risk, defined as the probability assessment of joint default events, the analysis of both corrections and interlinkages is important. Demsetz suggests that rather than representing inefficient contracting, low levels of management ownership occur in firms where agency problems are low.