8 Pages Posted: 25 Jan 2006
Date Written: January 2006
A corporation is an artificial person created for an economic purpose, as described in various aspects of the Theory of the Firm. Recent historical and comparative research shows that corporations in most countries come in groups, each controlled by a single principal. This has implications for various "theories of the firm". The perception that firms ought to be run to maximize shareholder value, though commonplace in financial economics, is also problematic in application.
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