The Evidence and Impact of Financial Globalization

Chapter 12

Disclosure of Ownership and Public Companies

J.A. McCahery*,^† and E.P.M. Vermeulen*,^‡

^*Tilburg University, Tilburg, The Netherlands

^†Duisenberg School of Finance, Amsterdam, The Netherlands

^‡Philips, Amsterdam, The Netherlands

Outline

Introduction

The Enron and Parmalat Examples

Disclosure of Beneficial Ownership

Inside and Outside Ownership: Costs and Benefits

The Importance of ‘Strict’ Disclosure and Reporting Mechanisms

Nominee and omnibus accounts

Derivatives

Control-enhancing mechanisms

Chains of corporate vehicles

Beneficial Ownership and Control: the Challenges

Related Party Transactions

Why Should One Care About Related Party Transactions?

Identifying Related Party Transactions: The Challenges

Disclosure of Beneficial Ownership ...