Large shareholders more likely to exploit small ones, but monitoring can stop it.
The article explores why big shareholders take advantage of small shareholders. It shows that big shareholders choose to take more money because small shareholders don't monitor as closely. By comparing profits from taking money versus not taking it, the study found that taking money is the smart choice for big shareholders. The study also found that better monitoring can reduce this unfair behavior. In conclusion, the study suggests ways to prevent big shareholders from taking advantage of small ones.