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We consider the influence of the pollutants and take it as the governance cost, called the environmental cost.
Extending a similar perspective beyond the Venice case, we show here how an analysis of governance cost can help screening scale-related policy options in environmental matters.
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That price overlooks fresh competition and potential corporate governance costs.
"If you add complexity, you are potentially adding governance costs," he argues.
The public policy benefits of sharpened governance oversight will be overwhelmed by the governance costs of perceived self-protection.
This post focuses on the governance costs and risks that Pinterest's public investors should expect to face down the road.
Pinterest's IPO will introduce into the public market another major company with a multi-class structure posing governance costs and risks.
In Section 2, we focus on the general case where common property regulation is feasible yet only if governance costs are kept to a reasonable level.
Most importantly for our purpose, we demonstrate that, as the controller's equity stake declines, the expected governance costs increase and, furthermore, the expected costs go up at an increasing rate.
That's not about including more detailed, obscure financial information in an annual report, but about putting as much effort into explaining that good governance costs money as into proving what's been achieved.
Finally, as we demonstrate in The Perils of Small-Minority Controllers, this analysis of the expected governance costs of tiny-minority controllers is consistent with a substantial body of empirical evidence.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com