  |
|
|
||||
|
||||
Eclipse of the Public Corporation
Michael C. Jensen Harvard Business School; Social Science Electronic Publishing (SSEP), Inc. HARVARD BUSINESS REVIEW (Sept.-Oct. 1989), revised 1997. Abstract: The publicly held corporation has outlived its usefulness in many sectors of the economy. New organizations are emerging. Takeovers, leveraged buyouts, and other going-private transactions are manifestations of this change. A central source of waste in the public corporation is the conflict between owners and managers over free cash flow. This conflict helps explain the prominent role of debt in the new organizations. The new organizations' resolution of the conflict explains how they can motivate people and manage resources more effectively than public corporations. (HBR McKinsey Award Winner)
Keywords: Governance, Agency, Control, Organizational Innovation, Going Private, Control Function of Debt, LBO Associations JEL Classifications: G32, G34 Working Paper SeriesDate posted: May 03, 1999 ; Last revised: August 10, 2006Suggested CitationContact Information
|
|
|||||||||||||||||||||||
© 2010 Social Science Electronic Publishing, Inc. All Rights Reserved.
FAQ
Terms of Use
Privacy Policy
Copyright
This page was served by apollo 6 in 0.156 seconds.
One-Click Download
Facebook
Twitter
Digg
Del.icio.us
CiteULike
