[AlexM]

This effect can be measured directly based on how involved an owner is with their business. It's much worse in giant corporations where everything is completely impersonal and the company is owned by shareholders who have little idea what goes on day to day in the company because there's ultimately no responsibility. Most people who wouldn't do things on their own or for their own benefit are completely willing to do them if it's "just an ugly part of their job." With a corporation, you've got the CEO thinking he's just doing his job (and he is really) to maximize the shareholders' wealth, then everyone else is pretty much just following the CEO's orders. If the shareholders aren't paying much attention (which they rarely do), bad things are gonna happen.

Of course, remove limited liability for corporations and shareholders will damned well pay attention.