The Firm as an Entity: Implications for Economics, Accounting, and the Law, London and NY: Routledge
10 Pages Posted: 2 May 2007 Last revised: 11 Dec 2013
Date Written: November 4, 2006
The collected book enhances current economic understanding of the firm as an institution and an organization, looking beyond the narrow boundaries of neoclassical economics to an interdisciplinary approach integrating accounting with law and economics. It represents the first synthesis of the authors' research work on the subject and provides the groundwork for the development of a comprehensive framework centred on the firm as an enterprise entity.
The volume starts with a synthesis and a critique of the current state of the theory of the firm and further develops them through new insights and neglected lessons from different traditions of thought.
The economic theory and analysis of the firm is given new insights here by looking at the firm as a whole and a dynamic system: as an institution and an organization, which has special functions and a distinct role in the economy and society. The current economic theories of the firm leaves some key issues fundamentally open. Recent crises in corporate governance and disclosure highlight the deficiencies and shortcomings of received approaches. The managerial and enforcement recommendations they advocate imply poor policy and sometimes huge economic and societal losses. In fact, at the time of high theory, great scholars have already raised the issues of the firm and suggested challenging ways to understand its role in the economy and society.
In this context, the contribution of the book consists in: (i) general essays, that pay attention to these insightful lessons from the past that presently are at least partially neglected; (ii) specific essays, that contribute to the enhancement of the interdisciplinary perspective by exploring its consequences and implications for accounting, ontology, law and economics, business finance, and the governance of the firm as an enterprise entity; and (iii) reprints of often rare or neglected essays by H. Simon, M. Shubik, R. Coase, A.A. Berle jr., R.N. Anthony, J.H. Stauss, that allow the reader to rediscover the work of previous authors, issues and ideas, and shall prove to be fundamental in enhancing the interdisciplinary approach offered by the collection.
Keywords: theory of the firm, incomplete contracts economics, contractualism, institutionalism, accounting and economics, business law and economics
JEL Classification: D23, L20, M20, M41, K20, B15, B25
Suggested Citation: Suggested Citation