Evidence of how these entities have performed is muddy because so much of their environment is distorted: for example, given cheap enough money and strong enough protection for their franchise, even corporate sluggards can show good profits and return on equity.

ECONOMIST: Privatisation in China

In return for taking a chunk of the profits in good times, shareholders get wiped out in bad times.

ECONOMIST: Bank bondholders

In return for good performance, Jones took 20% of whatever profits were made, and all the partners would share expenses.

FORBES: Growing Pains