chapter 33 principles of corporate finance tenth edition governance and corporate control around the...
DESCRIPTION
33-3 Financial Claims Percent The value of the financial claims on firms in 2007 as a percentage of GDP.TRANSCRIPT
Chapter 33Principles of
Corporate FinanceTenth Edition
Governance and Corporate Control Around the World
Slides by
Matthew Will
McGraw-Hill/Irwin Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved.
33-2
Topics Covered
Financial Markets and InstitutionsOwnership, Control and GovernanceDo These Differences Matter
33-3
Financial Claims
020406080
100120140160180200
US UK Europe Japan Non-JapanAsia
Bank Loans Stock Market Private Bond Market
Perc
ent
The value of the financial claims on firms in 2007 as a percentage of GDP.
33-4
Financial Claims
0
20
40
60
80
100
120
140
160
180
US UK Europe Japan
Banks Insurance and funds Equity Others
327% 306% 192% 267%
Perc
ent
Household Portfolio Allocation (1995-2007) as a percentage of GDP
33-5
Financial Claims
0
50
100
150
200
250
300
US UK Europe Japan
Debt Equity Loans Deposits and currency Other
Perc
ent
Financial Institution Portfolio Allocation (1995-2007) as a percentage of GDP
33-6
Financial Claims
0
10
20
30
40
50
60
70
US UK Europe Japan
Banks Equity Loans and trade credits Other
Perc
ent
Non-Financial Corporations’ Portfolio Allocation (1995-2007) as a percentage of GDP
33-7
Japanese Bank Ownership
Sumitomo Corporation
Sumitomo
Trust
Sumitomo
Bank
33-8
Ownership of Daimler Benz
Deutsch Bank
Kuwait Government
Mercedes Automobil Holding AG
Widely Held
Widely Held
Stern Auto Beteilig…
Stella Automobil Beteiligungsges
Widely Held
Bayerishe Landesbank
Robert Bosch Komet Automobil Beteiligungsges
Dresdner Bank
25% 25% 25% 25%
25% 25% 50%
28.3% 14% 25.23% 32.37%
Daimler Benz AG
33-9
European BOD
Codetermination Aufsichtsrat Vorstand Counseil du surveillance Directoire
33-10
Asian Ownership
Number of Firms in Smaple Family State
Widely Held
Percent of Assets controlled by top
10 familiesHong Kong 330 66.7 1.4 7 32.1 Indonesia 178 71.5 8.2 5.1 57.7 Japan 1240 9.7 0.8 79.8 2.4 Korea 345 48.4 1.6 43.2 36.8 Malaysia 238 67.2 13.4 10.3 24.8 Philippines 120 44.6 2.1 19.2 52.5 Singapore 221 55.4 23.5 5.4 26.6 Taiwan 141 48.2 2.8 26.2 18.4 Thailand 167 61.6 8 6.6 46.2
The ownership of firms in Asia is held by a small number of very wealthy
families.
33-11
ABB Sweden
Wallenberg Family Investor Investor Investor
Shares 5.7% Votes 7.4%
Shares 23.4%
Votes 41.2% Shares 24.3%
Votes 32.8% Shares 27.1%
Votes 35.7%
The pyramid that controls ABB, one of Sweden’s largest companies.
33-12
Voting Control
Australia 23% Italy 29%
Brazil 23% Korea 48%
Canada 3% Mexico 36%
Chile 23% Norway 6%
Denmark 1% South Africa 7%
Finland 0% Sweden 1%
France 28% Switzerland 6%
Germany 9% U.K. 10%Hong Kong -3% U.S. 2%
The value of control-block votes as a proportion of the total firm value.