Corporate ownership variesaround the world. Historically individuals have owned the majority of shares inpublic corporations in the United States. In Germany and Japan, however, banks,other large fi nancial institutions, and other companies own most of the stock inpublic corporations. Do you think agency problems are likely to be more or lesssevere in Germany and Japan than in the United States? Why? In recent years, largefi nancial institutions such as mutual funds and pension funds have been becomingthe dominant owners of stock in the United States, and these institutions arebecoming more active in corporate affairs. What are the implications of this trendfor agency problems and corporate control?