Managerial Economics 12th Edition by Mark Hirschey

Exercise 3

Ownership Structure. Describe each of the following factors as being responsible for increasing, decreasing, or having no effect on the amount of concentrated inside equity. Explain why.
A. High research and development expenditure requirements
B. A corporate history of poor operating performance
C. High levels of brand-name recognition
D. Intense news coverage of corporate activities
E. Imposition of rate of return regulation