Entrepreneurship and Corporate Governance

Posted: 11 Nov 2009

See all articles by Peter G. Klein

Peter G. Klein

Baylor University - Hankamer School of Business; Norwegian School of Economics (NHH) - Department of Strategy and Management; Ludwig von Mises Institute

Date Written: 1999

Abstract

Very few researchers have tackled the problem ofcorporate governance (i.e. financial capital owners' attempts to preventrecipients from misusing the capital) from an Austrian perspective. In thisstudy, an analysis of the financial-market entrepreneur is used to outline somefeatures of an Austrian theory of corporate governance. First, the traditional, production-function theory of the firm is reviewed,and two alternative perspectives—that of the entrepreneur and that of thecapitalist—are proposed. Next, the contractual approach to the firm isdiscussed, and it is argued that such an approach provides a useful organizingframework for Austrian research on the firm. Entrepreneurship and economiccalculation are proposed as building blocks for an Austrian theory of thefirm. The following four areas for further research in corporate governance fromthe Austrian economic perspective are outlined: firms as investments, internalcapital markets, comparative corporate governance, and financiers asentrepreneurs. (SAA)

Keywords: Austrian economics, Financiers, Capitalists, Production function, Firm theory, Financial markets, Mises, Ludwig von, Economic research, Firm governance

Suggested Citation

Klein, Peter G., Entrepreneurship and Corporate Governance (1999). University of Illinois at Urbana-Champaign's Academy for Entrepreneurial Leadership Historical Research Reference in Entrepreneurship, Available at SSRN: https://ssrn.com/abstract=1503848

Peter G. Klein (Contact Author)

Baylor University - Hankamer School of Business ( email )

Waco, TX 76798
United States
254-710-4903 (Phone)

Norwegian School of Economics (NHH) - Department of Strategy and Management ( email )

Breiviksveien 40
N-5045 Bergen
Norway

Ludwig von Mises Institute ( email )

Auburn, AL
United States

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