January 11, 2004 by AK
Corporate governance revisited
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).
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