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The lessons of Michael C. Jensen

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  • Stulz, René M.

Abstract

This paper assesses the contributions of Michael C. Jensen to financial economics and to American business. His work on agency theory is the cornerstone of modern corporate finance. He influenced how American business operates by helping make the internal and external governance of firms more efficient. He changed how knowledge in financial economics is diffused both through the founding of the Journal of Financial Economics and of the Social Science Research Network. I question the claim made by some that he recanted his ideas in the 2000s.

Suggested Citation

  • Stulz, René M., 2025. "The lessons of Michael C. Jensen," Journal of Financial Economics, Elsevier, vol. 172(C).
    • Handle: RePEc:eee:jfinec:v:172:y:2025:i:c:s0304405x25001266
    DOI: 10.1016/j.jfineco.2025.104118
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    References listed on IDEAS

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