Can Blockchain Create a Corporate-Governance Revolution at Public Companies?

In a new paper, we analyze the major disconnect between the theory of corporate governance, its legal expression, and the reality of corporate ownership structures, based on an “indirect holding system” (IHS), which has evolved from complex existing technological limitations. We argue that distributed ledger technology (DLT) offers the potential to redesign the company registry and securities clearing and settlement systems for public companies and realign them with theory. While doing so, we also seek to transcend the hype around DLT. While carefully considering the current financial market’s path dependence, we assess the actual and substantial potential of DLT … Read more