skip to content
Inherited wealth, corporate control and economic growth : the Canadian disease? Preview this item
ClosePreview this item
Checking...

Inherited wealth, corporate control and economic growth : the Canadian disease?

Author: Randall Morck; David A Strangeland; Bernard Yeung; National Bureau of Economic Research.
Publisher: Cambridge, MA : National Bureau of Economic Research, ©1998.
Series: Working paper series (National Bureau of Economic Research), working paper no. 6814.
Edition/Format:   eBook : Document : EnglishView all editions and formats
Summary:
Abstract: Countries in which billionaire heirs' wealth is large relative to G.D.P. grow more slowly, show signs of more political rent-seeking, and spend less on innovation than do other countries at similar levels of development. In contrast, countries in which self-made entrepreneur billionaire wealth is large relative to G.D.P. grow more rapidly and show fewer signs of rent seeking. We argue that this is  Read more...
Rating:

(not yet rated) 0 with reviews - Be the first.

Subjects
More like this

Find a copy in the library

&AllPage.SpinnerRetrieving; Finding libraries that hold this item...

Details

Material Type: Document, Internet resource
Document Type: Internet Resource, Computer File
All Authors / Contributors: Randall Morck; David A Strangeland; Bernard Yeung; National Bureau of Economic Research.
OCLC Number: 70108024
Notes: "November 1998."
Description: 1 online resource (66 pages).
Series Title: Working paper series (National Bureau of Economic Research), working paper no. 6814.
Responsibility: Randall K. Morck, David A. Strangeland, Bernard Yeung.

Abstract:

Abstract: Countries in which billionaire heirs' wealth is large relative to G.D.P. grow more slowly, show signs of more political rent-seeking, and spend less on innovation than do other countries at similar levels of development. In contrast, countries in which self-made entrepreneur billionaire wealth is large relative to G.D.P. grow more rapidly and show fewer signs of rent seeking. We argue that this is consistent with wealthy entrenched families' having objectives other than creating public shareholder value. Also, the control pyramids through which they are entrenched give wealthy families preferential access to capital and enhanced lobbying power. Entrenched families also have vested interest in preserving the value of existing capital. To investigate these arguments, we use firm-level Canadian data. Heir-controlled Canadian firms show low industry-adjusted financial performance, labor capital ratios, and R & D spending relative to other firms the same ages and sizes. We argue that concentrated, inherited corporate control impedes growth, and dub this the Canadian disease.' Further research is needed to determine the international incidence of this condition. Finally, heir-controlled Canadian firms' share prices fell relative to those of comparable firms on the news that the Canada-U.S. free trade agreement would be ratified. A key provision of that treaty is capital market openness. Under the treaty, heir-controlled Canadian firms' labor capital ratios rose, while the incidence of heir-control fell. We suggest that openness, especially of capital markets, may mitigate the ill effects of concentrated inherited control. If so, capital market openness matters for reasons not captured by standard international trade and finance models.

Reviews

User-contributed reviews
Retrieving GoodReads reviews...
Retrieving DOGObooks reviews...

Tags

Be the first.
Confirm this request

You may have already requested this item. Please select Ok if you would like to proceed with this request anyway.

Linked Data


Primary Entity

<http://www.worldcat.org/oclc/70108024> # Inherited wealth, corporate control and economic growth : the Canadian disease?
    a schema:Book, schema:MediaObject, schema:CreativeWork ;
   library:oclcnum "70108024" ;
   library:placeOfPublication <http://experiment.worldcat.org/entity/work/data/26091573#Place/cambridge_ma> ; # Cambridge, MA
   library:placeOfPublication <http://id.loc.gov/vocabulary/countries/mau> ;
   schema:about <http://id.worldcat.org/fast/1204310> ; # Canada.
   schema:about <http://id.worldcat.org/fast/879649> ; # Corporate governance
   schema:about <http://experiment.worldcat.org/entity/work/data/26091573#Topic/inheritance_and_succession_economic_aspects_canada> ; # Inheritance and succession--Economic aspects--Canada
   schema:about <http://experiment.worldcat.org/entity/work/data/26091573#Topic/corporate_governance_canada> ; # Corporate governance--Canada
   schema:about <http://id.worldcat.org/fast/846320> ; # Capital investments
   schema:about <http://id.worldcat.org/fast/831810> ; # Billionaires
   schema:about <http://experiment.worldcat.org/entity/work/data/26091573#Topic/billionaires_canada> ; # Billionaires--Canada
   schema:about <http://experiment.worldcat.org/entity/work/data/26091573#Topic/capital_investments_canada> ; # Capital investments--Canada
   schema:about <http://id.worldcat.org/fast/973377> ; # Inheritance and succession--Economic aspects
   schema:about <http://experiment.worldcat.org/entity/work/data/26091573#Topic/inheritance_and_succession_economic_aspects> ; # Inheritance and succession--Economic aspects
   schema:bookFormat schema:EBook ;
   schema:contributor <http://viaf.org/viaf/57692791> ; # David A. Strangeland
   schema:contributor <http://viaf.org/viaf/135446122> ; # National Bureau of Economic Research.
   schema:contributor <http://viaf.org/viaf/66622761> ; # Bernard Yeung
   schema:copyrightYear "1998" ;
   schema:creator <http://viaf.org/viaf/76480622> ; # Randall Morck
   schema:datePublished "1998" ;
   schema:description "Abstract: Countries in which billionaire heirs' wealth is large relative to G.D.P. grow more slowly, show signs of more political rent-seeking, and spend less on innovation than do other countries at similar levels of development. In contrast, countries in which self-made entrepreneur billionaire wealth is large relative to G.D.P. grow more rapidly and show fewer signs of rent seeking. We argue that this is consistent with wealthy entrenched families' having objectives other than creating public shareholder value. Also, the control pyramids through which they are entrenched give wealthy families preferential access to capital and enhanced lobbying power. Entrenched families also have vested interest in preserving the value of existing capital. To investigate these arguments, we use firm-level Canadian data. Heir-controlled Canadian firms show low industry-adjusted financial performance, labor capital ratios, and R & D spending relative to other firms the same ages and sizes. We argue that concentrated, inherited corporate control impedes growth, and dub this the Canadian disease.' Further research is needed to determine the international incidence of this condition. Finally, heir-controlled Canadian firms' share prices fell relative to those of comparable firms on the news that the Canada-U.S. free trade agreement would be ratified. A key provision of that treaty is capital market openness. Under the treaty, heir-controlled Canadian firms' labor capital ratios rose, while the incidence of heir-control fell. We suggest that openness, especially of capital markets, may mitigate the ill effects of concentrated inherited control. If so, capital market openness matters for reasons not captured by standard international trade and finance models."@en ;
   schema:exampleOfWork <http://worldcat.org/entity/work/id/26091573> ;
   schema:inLanguage "en" ;
   schema:isPartOf <http://experiment.worldcat.org/entity/work/data/26091573#Series/nber_working_paper_series> ; # NBER working paper series ;
   schema:isPartOf <http://experiment.worldcat.org/entity/work/data/26091573#Series/working_paper_series_national_bureau_of_economic_research> ; # Working paper series (National Bureau of Economic Research) ;
   schema:name "Inherited wealth, corporate control and economic growth : the Canadian disease?"@en ;
   schema:productID "70108024" ;
   schema:publication <http://www.worldcat.org/title/-/oclc/70108024#PublicationEvent/cambridge_ma_national_bureau_of_economic_research_1998> ;
   schema:publisher <http://experiment.worldcat.org/entity/work/data/26091573#Agent/national_bureau_of_economic_research> ; # National Bureau of Economic Research
   schema:url <http://papers.nber.org/papers/w6814> ;
   schema:url <http://papers.nber.org/> ;
   wdrs:describedby <http://www.worldcat.org/title/-/oclc/70108024> ;
    .


Related Entities

<http://experiment.worldcat.org/entity/work/data/26091573#Agent/national_bureau_of_economic_research> # National Bureau of Economic Research
    a bgn:Agent ;
   schema:name "National Bureau of Economic Research" ;
    .

<http://experiment.worldcat.org/entity/work/data/26091573#Series/nber_working_paper_series> # NBER working paper series ;
    a bgn:PublicationSeries ;
   schema:hasPart <http://www.worldcat.org/oclc/70108024> ; # Inherited wealth, corporate control and economic growth : the Canadian disease?
   schema:name "NBER working paper series ;" ;
    .

<http://experiment.worldcat.org/entity/work/data/26091573#Series/working_paper_series_national_bureau_of_economic_research> # Working paper series (National Bureau of Economic Research) ;
    a bgn:PublicationSeries ;
   schema:hasPart <http://www.worldcat.org/oclc/70108024> ; # Inherited wealth, corporate control and economic growth : the Canadian disease?
   schema:name "Working paper series (National Bureau of Economic Research) ;" ;
    .

<http://experiment.worldcat.org/entity/work/data/26091573#Topic/inheritance_and_succession_economic_aspects> # Inheritance and succession--Economic aspects
    a schema:Intangible ;
   schema:hasPart <http://id.loc.gov/authorities/subjects/sh85066373> ;
   schema:name "Inheritance and succession--Economic aspects"@en ;
    .

<http://experiment.worldcat.org/entity/work/data/26091573#Topic/inheritance_and_succession_economic_aspects_canada> # Inheritance and succession--Economic aspects--Canada
    a schema:Intangible ;
   schema:hasPart <http://id.loc.gov/authorities/subjects/sh85066373> ;
   schema:name "Inheritance and succession--Economic aspects--Canada"@en ;
    .

<http://id.worldcat.org/fast/1204310> # Canada.
    a schema:Place ;
   schema:name "Canada." ;
    .

<http://id.worldcat.org/fast/831810> # Billionaires
    a schema:Intangible ;
   schema:name "Billionaires"@en ;
    .

<http://id.worldcat.org/fast/846320> # Capital investments
    a schema:Intangible ;
   schema:name "Capital investments"@en ;
    .

<http://id.worldcat.org/fast/879649> # Corporate governance
    a schema:Intangible ;
   schema:name "Corporate governance"@en ;
    .

<http://id.worldcat.org/fast/973377> # Inheritance and succession--Economic aspects
    a schema:Intangible ;
   schema:name "Inheritance and succession--Economic aspects"@en ;
    .

<http://viaf.org/viaf/135446122> # National Bureau of Economic Research.
    a schema:Organization ;
   schema:name "National Bureau of Economic Research." ;
    .

<http://viaf.org/viaf/57692791> # David A. Strangeland
    a schema:Person ;
   schema:familyName "Strangeland" ;
   schema:givenName "David A." ;
   schema:name "David A. Strangeland" ;
    .

<http://viaf.org/viaf/66622761> # Bernard Yeung
    a schema:Person ;
   schema:birthDate "1953" ;
   schema:familyName "Yeung" ;
   schema:givenName "Bernard" ;
   schema:name "Bernard Yeung" ;
    .

<http://viaf.org/viaf/76480622> # Randall Morck
    a schema:Person ;
   schema:familyName "Morck" ;
   schema:givenName "Randall" ;
   schema:name "Randall Morck" ;
    .

<http://www.worldcat.org/title/-/oclc/70108024>
    a genont:InformationResource, genont:ContentTypeGenericResource ;
   schema:about <http://www.worldcat.org/oclc/70108024> ; # Inherited wealth, corporate control and economic growth : the Canadian disease?
   schema:dateModified "2018-03-10" ;
   void:inDataset <http://purl.oclc.org/dataset/WorldCat> ;
    .


Content-negotiable representations

Close Window

Please sign in to WorldCat 

Don't have an account? You can easily create a free account.