This time by the Ventilator. Corporate governance problems keep getting back at us, ad nauseam, ad infinitum. Now Prof. Bainbridge looks at Parmalat as a CG failure, and lists the two pain centers of CG: the principal-agent problem in its shareholder-manager avatar, and the controlling stockholder’s war on minority stockholders. A broader view of CG would be to take account of other stakeholders influencing the firm’s behavior, e.g., its creditors.
Until the scandal broke out, I had thought Parmalat was a Finnish company. Italy doesn’t go well with packaged milk in my world. And until a few hours ago, it didn’t occur to me that Parmalat was a combination of Parma and latte, thus meaning simply Parma milk (compare La Chartreuse de Parme, hehe).