9/6/2023 0 Comments Free pdf merger audiolixThe article argues that European Economic integration is not inducing convergence within European capitalisms on a single neoliberal model, but rather leads to increased variegation and hybridisation of different European capitalist models. This article explores the relationship between global capital flows, takeover regulation, and European capitalism. Finally, it posits that hedge fund activism has been beneficial and hidden ownership too has many positives, most of which are overlooked and in conjunction, it can be an effective check on managerial rent seeking and allow for greater shareholder oversight by incentivizing monitoring. Hidden ownership is an effective check on errant managers, especially in regimes where the allocation of powers is skewed in favour of the directors. It examines the existing disclosure regime and argues that the benefits of hidden ownership outweigh the costs and regulators ought to appreciate the political economy of the jurisdiction before mandating further disclosure. Hidden ownership thus contributes to more efficient markets, better markets for corporate influence and corporate control and is an effective check on managerial rent seeking. The article argues that mandatory disclosure of economic only ownership can have a deleterious effect on the financial markets as it will diminish the incentives to search for information which is a socially beneficial activity. It then examines hedge fund activism as a means of revitalizing corporate governance and shows how hidden ownership incentivizes activism by rewarding expensive investments in developing private information. This article underscores the benefits of hidden ownership and examines its impact on corporate governance. The dissociation of a share into voting and economic rights has made hidden ownership possible.
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