A Theory of the Firm Governance, Residual Claims, and Organizational Forms |
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| Author:
| Jensen, Michael C. |
| ISBN: | 978-0-674-01229-5 |
| Publication Date: | Sep 2003 |
| Publisher: | Harvard University Press
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| Book Format: | Paperback |
| List Price: | USD $34.00 |
Book Description:
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This collection examines the forces, both external and internal, that lead corporations to behave efficiently and to create wealth. Corporations vest control rights in shareholders, the author argues, because they are the constituency that bear business risk and therefore have the appropriate incentives to maximize corporate value. Assigning control to any other group would be tantamount to allowing that group to play poker with someone else's money, and would create inefficiencies.
This collection examines the forces, both external and internal, that lead corporations to behave efficiently and to create wealth. Corporations vest control rights in shareholders, the author argues, because they are the constituency that bear business risk and therefore have the appropriate incentives to maximize corporate value. Assigning control to any other group would be tantamount to allowing that group to play poker with someone else's money, and would create inefficiencies.