Can the Corporation Survive?
Michael C. Jensen
Harvard Business School; Social Science Electronic Publishing (SSEP), Inc.; National Bureau of Economic Research (NBER); European Corporate Governance Institute (ECGI)
William H. Meckling
Simon School, University of Rochester (Deceased)
January 30, 1978
Financial Analysts Journal, Vol. 31, No. 1, pp. 31-37, January/February 1978
Harvard Business School NOM Unit Working Paper No. 1978
One of the tactics politicians use in their quest for power is to draw a false distinction between human rights and property rights. Property rights are, in the last analysis, rights of individuals. As investors, who have a direct stake in the property rights of corporation, become less certain that society will honor those rights, the capitalized values of corporate securities will erode - ultimately to the point that many corporations will be able to remain in business only so long as they can finance their operations from internally generated cash flow or public subsidy.
Number of Pages in PDF File: 19
Keywords: Rights, regulation, private enterprise, contracts, rights, regulation, private enterprise, contractsAccepted Paper Series
Date posted: May 15, 2001 ; Last revised: May 18, 2013
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