Incentives in Corporations: Evidence from the American Whaling Industry
AbstractIn the 1830s, when whaling was a prosperous American industry, a number of whaling corporations were chartered. All of them were short-lived. This paper analyzes the failure of corporations in the American whaling industry and argues that the corporate form was unable to create the incentives requisite for success in whaling. Most nineteenth-century whaling ventures were owned by a small number of local investors and were configured to provide powerful incentives for their managers. The effect of the corporate form on productivity is analyzed using a newly collected panel data set of 874 whaling voyages. Many whaling corporations were managed by individuals who had previously (or would subsequently) manage ventures with the usual ownership structure. Using an individual fixed effects framework, I identify a strong negative effect of the corporate form on productivity.
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoArticle provided by University of Chicago Press in its journal Journal of Law and Economics.
Volume (Year): 49 (2006)
Issue (Month): 1 (April)
Contact details of provider:
Web page: http://www.journals.uchicago.edu/JLE/
Other versions of this item:
- Eric Hilt, 2004. "Incentives in Corporations: Evidence from the American Whaling Industry," NBER Working Papers 10403, National Bureau of Economic Research, Inc.
- N5 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries
- L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
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.:
- Ellickson, Robert C, 1989. "A Hypothesis of Wealth-Maximizing Norms: Evidence from the Whaling Industry," Journal of Law, Economics and Organization, Oxford University Press, vol. 5(1), pages 83-97, Spring.
- Allen, Douglas W & Lueck, Dean, 1998. "The Nature of the Farm," Journal of Law and Economics, University of Chicago Press, vol. 41(2), pages 343-86, October.
- Jensen, Michael C. & Meckling, William H., 1976. "Theory of the firm: Managerial behavior, agency costs and ownership structure," Journal of Financial Economics, Elsevier, vol. 3(4), pages 305-360, October.
- Eric Hilt, 2007.
"When did Ownership Separate from Control? Corporate Governance in the Early Nineteenth Century,"
NBER Working Papers
13093, National Bureau of Economic Research, Inc.
- Hilt, Eric, 2008. "When did Ownership Separate from Control? Corporate Governance in the Early Nineteenth Century," The Journal of Economic History, Cambridge University Press, vol. 68(03), pages 645-685, September.
- Alex Gershkov & Jianpei Li & Paul Schweinzer, 2014.
"How to share it out: The value of information in teams,"
14/08, Department of Economics, University of York.
- Alex Gershkov & Jianpei Li & Paul Schweinzer, 2014. "How to Share it out: The Value of Information in Teams," CESifo Working Paper Series 4906, CESifo Group Munich.
- Eric Hilt, 2014.
"Corporate Governance and the Development of Manufacturing Enterprises in Nineteenth-Century Massachusetts,"
NBER Working Papers
20096, National Bureau of Economic Research, Inc.
- Eric Hilt, 2014. "Corporate Governance and the Development of Manufacturing Enterprises in Nineteenth-Century Massachusetts," NBER Chapters, in: Enterprising America: Businesses, Banks, and Credit Markets in Historical Perspective National Bureau of Economic Research, Inc.
- Hilt, Eric, 2008.
"The negative trade-off between risk and incentives: Evidence from the american whaling industry,"
Explorations in Economic History,
Elsevier, vol. 45(4), pages 424-444, September.
- Eric Hilt, 2006. "The Negative Trade-off Between Risk and Incentives: Evidence from the American Whaling Industry," NBER Working Papers 11960, National Bureau of Economic Research, Inc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Journals Division).
If references are entirely missing, you can add them using this form.