19 Pages Posted: 15 May 2001 Last revised: 18 May 2013
Date Written: January 30, 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.
Keywords: Rights, regulation, private enterprise, contracts, rights, regulation, private enterprise, contracts
Suggested Citation: Suggested Citation
Jensen, Michael C. and Meckling, William H., Can the Corporation Survive? (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. Available at SSRN: https://ssrn.com/abstract=244155 or http://dx.doi.org/10.2139/ssrn.244155