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Browsing by Author "Gilkey, Nathaniel"

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  • Gilkey, Nathaniel (2016)
    Minority shareholder protection is an important aspect of the modern market. It allows the infusion of capital into the market and wealth generation. But one must come to accept that the minority shareholder has less protection when they deal with a SOE even within the established markets of the United States and Nordic countries. This lower protection stems from the state having competing goals in regard to the market. For the state does not just care about wealth creation but other factors such as employment and economic development. These goals will in many cases cause the state to undertake policies that could run counter to the goals of traditionally run corporations. Whenever there is massive change in markets governments have been tempted to manage the change. This market management might increase again due to the rapid changes of the digital age and its impact on traditional businesses. How countries respond will always be different. Thus stakeholders should be wary of attempting to apply their own corporate cultural interpretations to the actions of governments. For government action is guided by the public interpretation of the role of government and its power. Fundamental differences exist in how the public views government involvement including the degree of trust and acceptance for government involvement in enterprises and market dynamics. The minority investor needs to understand their limitations and be willing to accept the inherent risks in this environment recognizing there is little legal recourse especially across countries.