The separation of ownership and control in East Asian Corporations

We examine the separation of ownership and control for 2,980 corporations i n nine East Asian countries. In all countries, voting rights frequently exc eed cash-flow rights via pyramid structures and cross-holdings. The separat ion of ownership and control is most pronounced among family-controlled fir ms and small firms. More than two-thirds of firms are controlled by a singl e shareholder. Managers of closely held firms tend to be relatives of the c ontrolling shareholder's family. Older firms are generally family-controlle d, dispelling the notion that ownership becomes dispersed over time. Finall y, significant corporate wealth in East Asia is concentrated among a few fa milies. (C) 2000 Elsevier Science S.A. All rights reserved. JEL classificat ion: G32; L22.