The ownership of listed companies in East Asia is typically concentrated in the hands of large shareholders. This concentrated control is achieved through complicated ownership arrangements, ., stock pyramids and In this section, we discuss the forces that shape the ownership structure. We then discuss how the ownership structure shapes the firms’ agency problems, through its entrenchment and incentive alignment effects on controlling owners. We finally discuss the entrenchment and the information arguments, which lead to a hypothesis pertaining to the relation between ownership structure and earnings informativeness
