Rizeanu, Sorin

Professor

Contact

Phone number: (250) 472-5382
Email: srizeanu@uvic.ca
Department: Business

Research description:

  • Corporate Governance
  • International Finance

Expertise Profile

Dr. Sorin Rizeanu studies Corporate Governance issues and the mechanisms that investors, firms and governments around the world use to reasonably and efficiently address and prevent such problems.

Often, there are concerns about managers who exploit the confidence of the shareholders for their private benefit, usually by making un-optimal decisions, misusing firm assets or even stealing to accumulate large private fortunes. In other cases, the controlling shareholder exploits his position at the expense of the smaller shareholders, by interfering in the firm's operations, cumulating control rights in excess of the cash flow rights, constructing ownership pyramids or seizing control of the board of directors. Small shareholders, with limited access to information, coordination, cost and free-rider problems, are often taken advantage of.

Dr. Rizeanu's research examines in more depth several internal, external and regulatory mechanisms that address such concerns. For instance, of particular focus is the firm's ownership structure-- multiple large shareholders, the separation of cash rights and control rights, pyramidal structures. Similarly, external institutions, such as some auditors or lenders, can alleviate governance concerns by providing superior monitoring. To add to the complexity of the issues studied, legal and regulatory factors interact with these mechanisms, strengthening some of them or making them redundant in other cases.

Dr. Rizeanu has found that students have a strong interest in his research so he often incorporates his work in his classes. He regularly finds corporate governance contexts that have extensive media coverage, and uses them in class. "I use these current situations to generate student debates," he says. "They're very useful in developing critical thinking and a sense of ethics."




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