What happens when a company is robbed by its dominant shareholder?
The theft not only hurts minority shareholders, but profoundly damages the firm's longer-term health and viability, according to Charles M.C. Lee, an accounting professor at Stanford's Graduate School of Business. In a recent research paper, Lee and two Peking University scholars examined such insider abuse in an increasingly important market: China.
This piece originally appeared in Stanford Business Insights from Stanford Graduate School of Business. To receive business ideas and insights from Stanford GSB click here: (To sign up : https://www.gsb.stanford.edu/insights/about/emails ) ]