sue strategies that maximize shareh

sue strategies that maximize shareholder value. However, when ownership is spread out
among numerous entities, less monitoring and control takes place allowing managers to
pursue other strategies. Public choice theory has also been used by researchers to explain
ownership influences (e.g., Cuervo and Villalonga (2000); Martin and Parker (1997)).
Public choice theory suggests that State-owned firms might pursue vote-gaining goals instead
of efficiency goals because of the pressures imposed by politicians. Hence, the corporate
governance literature suggests that owners influence firm performance through
their impact on firm strategy.