Why Regulatory Dualism has been produced? The resistance of the established firms The reform will shift wealth,corporate power,ultimately political power from the controlling owners to public shareholders. Effective shareholder protection will facilitate the financing of potential competitors. Influence on Resistance Incentive political to the process reformThe resistance of the established firms 1 • The reform will shift wealth, corporate power, ultimately political power from the controlling owners to public shareholders. 2 • Effective shareholder protection will facilitate the financing of potential competitors. Incentive Influence on political process Resistance to the reform Why Regulatory Dualism has been produced?