Corporate Governance and the Praxeology of the Owner-Capitalist-Entrepreneur. Recollecting Thoughts from the Modern Austrian School of Economics
AbstractTraditional literature regarding “corporate governance” finds the “tension between ownership and management” (as it was shaped by the agency theory) to be a node in the logic of what should be the answer to the question “how the structure of the corporation property can be designated and, in this way, achieve its organizational architectural efficiency on the more developed financial markets, populated by public listed firms and owned by «diffuse» shareholders?”. In such modern capital markets, that are more dynamic due to a more liberal corporatist law (although uneven across jurisdictions), a phenomenon as “unprecedented” as “ambiguously” theorized by Berle and Means (1932) has been identified: the classic problem of the “separation of ownership from control”. This article makes a brief survey on a part of the corporate governance literature that is mostly neglected and in the ignorance of which lies the melting down in the same pot of the “separation of ownership from control” reality and the “managerial omnipotence” fatality, both associated to modern multinational corporation, and otherwise messed up by Berle and Means (1932). The Austrian School literature in the theory of the firm has the potential to mitigate bad explanations and poor policy prescriptions that undeservedly hamper the very capacity of corporate structures to adapt themselves to changes, the need turning more stringent in times of worldwide spread crises.
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Bibliographic InfoArticle provided by Faculty of Management, Academy of Economic Studies, Bucharest, Romania in its journal REVIEW OF INTERNATIONAL COMPARATIVE MANAGEMENT.
Volume (Year): 13 (2012)
Issue (Month): 3 (July)
praxeology; Austrian School; corporate governance; entrepreneurship; agency.;
Find related papers by JEL classification:
- B53 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Austrian
- L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
- L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
- M16 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - International Business Administration
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Peter G. Klein, . "Entrepreneurship and Corporate governance," IVS/CBS Working Papers 98-15, Department of Industrial Economics and Strategy, Copenhagen Business School.
- Klein, Peter G, 1996. " Economic Calculation and the Limits of Organization," The Review of Austrian Economics, Springer, vol. 9(2), pages 3-28.
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