• Lucian Bebchuk


The Agency Costs of Controlling Shareholders. Lucian Bebchuk, 2018, Paper, "Economists, legal scholars and courts focus on the wedge between controllers' cash flow and voting rights as perhaps the most important source of agency costs. In this Paper, however, we argue that another important source of agency costs is the nature and scale of other businesses owned by the controlling shareholder. Controllers’ ownership of other businesses—especially in related industries— provides them with opportunities and motive to divert value from one business to another..." Link