Principal-Principal Agency Problem and Shareholder Activism
Bibliographic record
Abstract
Drawing from the social movement perspective of corporate governance, we explore the underlying dynamics of agency conflict between controlling shareholders and minority shareholders, namely principal-principal agency problem. We argue that tunneling of resource from publicly traded firms to business group affiliates could be used as a device of minority shareholder expropriation and show how it is guided by motives of controlling families. In response, we explore how minority shareholder activism act as a possible means through which minority shareholder access to corporate governance in order to alleviate the principal-principal agency problem. Using rich related party transactions data of inter-firm purchases, sales, debts, and loans within Korean business groups, we examine how and why controlling shareholders in publicly traded firms wield their power over the firms to generate private benefit by shifting resources out from firms. We show how minority shareholder movement gained its presence in Korea and test the efficacy of minority shareholder activism in reducing related party transactions.
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How this classification was reachedexpand
Full frame distilled prediction
Teacher imitationNot calibrated prevalence, not ground truth. Human validation pending. Learned from the 10,348 direct Codex labels and 10,348 direct Gemma labels. Candidate is the union of thresholded teacher heads; consensus is their intersection. These outputs are machine_predicted_unvalidated and are not human labels or direct frontier model labels.
Codex and Gemma teacher scores by category
| Category | Codex | Gemma |
|---|---|---|
| Metaresearch | 0.001 | 0.000 |
| Meta-epidemiology (narrow) | 0.000 | 0.000 |
| Meta-epidemiology (broad) | 0.000 | 0.000 |
| Bibliometrics | 0.000 | 0.000 |
| Science and technology studies | 0.000 | 0.000 |
| Scholarly communication | 0.000 | 0.001 |
| Open science | 0.000 | 0.000 |
| Research integrity | 0.000 | 0.000 |
| Insufficient payload (model declined to judge) | 0.001 | 0.000 |
Machine scores (provisional)
The two teacher heads of the student model, read on this work. A score orders the frame for review; it never asserts a category, and the validation status ships verbatim with every row.
Baseline scores from an immature model (maturity gate not passed, 7 training rounds). Scores rank; they never assert a category.
score_only:v0-immature-baseline · verbatim from the scoring run: score_only means the number may rank works, and no category label ships from itClassification
machine, unvalidatedMachine predicted; a candidate call from one teacher head, not a consensus.
How this classification was reached, model by model and score by score, is at the end of the page under "How this classification was reached".