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The Origin of Corporate Control Power

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  • Jie He
  • Min Wang

Abstract

How does the control power of corporate shareholder arise? On the fundamental principles of economics, we discover that the probability of a shareholder possessing optimal control power evolves in Fibonacci series pattern and emerges as the wave between 1/2 and 2/3 along with time in period of 12h (h is the time interval between the state and state of the evolution). This novel feature suggests the efficiency of the allocation of corporate shareholders' right and power. Data on the Chinese stock market support this prediction.

Suggested Citation

  • Jie He & Min Wang, 2021. "The Origin of Corporate Control Power," Papers 2106.01681, arXiv.org, revised Nov 2024.
    • Handle: RePEc:arx:papers:2106.01681
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    Cited by:

    1. Giraldo, Iader & Turner, Philip, 2022. "The Dollar Debt of Companies in Latin America: the warning signs," National Institute of Economic and Social Research (NIESR) Discussion Papers 534, National Institute of Economic and Social Research.

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