
Contents
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21.1 A Riddle 21.1 A Riddle
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21.2 Great pyramids 21.2 Great pyramids
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21.3 Pyramid power 21.3 Pyramid power
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21.4 A balm for all ills 21.4 A balm for all ills
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21.5 May pharaoh rest in peace 21.5 May pharaoh rest in peace
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21.6 Diverging tunnels 21.6 Diverging tunnels
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21.7 Eternal life 21.7 Eternal life
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21.8 The Undead 21.8 The Undead
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21.9 Iconoclasts 21.9 Iconoclasts
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21.10 Daring the gods 21.10 Daring the gods
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References References
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21 The Riddle of the Great Pyramids
Get accessRandall Morck is Stephen A. Jarislowski Distinguished Chair in Finance and University Professor at the University of Alberta and a Research Associate of the National Bureau of Economic Research. He has published widely on corporate valuations, business groups, family firms and corporate lobbying in the Review of Economics and Statistics, Journal of Finance, Journal of Economic Literature and other leading journals.
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Published:02 September 2010
Cite
Abstract
Business groups inspire much confusion. To the Americans and British, capitalism forced brisk competition—maximizing efficiency. To everyone else, capitalism turned the economy over to a handful of old moneyed families. Neither side accorded the other much leeway: the Americans and Brits marveled at the conspiracy theories circulating in less enlightened parts of the world; the others marveled at the naivety of the Anglo-Saxons. Only recently has either side taken the other seriously. It turns out both are right, and capitalism is different in different countries. Remarkably, this stems largely—primarily, this article argues—from differences in corporate governance regarding pyramidal groups. Following most of the finance literature, this article defines a group as two or more listed firms under a common controlling shareholder. It says that the group is pyramidal if one listed group firm is a controlled subsidiary of another.
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