B. Definitions of VariablesWe ask w

B. Definitions of VariablesWe ask whether firms have substantial owners. We do not try to measureownership concentration, because a theoretically appropriate measure requires a model of the interactions between large shareholders, which we donot have. Rather, we try to define owners in a variety of ways, summarizedin Table I and discussed in this subsection. In the following subsection, weillustrate these definitions using several companies from our sample.Our definitions of ownership rely on voting rights rather than cash flowrights. Recall that Berle and Means want to know who controls the moderncorporation: shareholders or managers. We too want to know whether corporations have shareholders with substantial voting rights, either directlyor through a chain of holdings. This idea motivates our definitions