Can the Corporation Survive?

19 Pages Posted: 15 May 2001 Last revised: 18 May 2013

See all articles by Michael C. Jensen

Michael C. Jensen

Harvard Business School; SSRN; National Bureau of Economic Research (NBER); European Corporate Governance Institute (ECGI); Harvard University - Accounting & Control Unit

William H. Meckling

Simon School, University of Rochester (Deceased)

Date Written: January 30, 1978

Abstract

One of the tactics politicians use in their quest for power is to draw a false distinction between human rights and property rights. Property rights are, in the last analysis, rights of individuals. As investors, who have a direct stake in the property rights of corporation, become less certain that society will honor those rights, the capitalized values of corporate securities will erode - ultimately to the point that many corporations will be able to remain in business only so long as they can finance their operations from internally generated cash flow or public subsidy.

Keywords: Rights, regulation, private enterprise, contracts, rights, regulation, private enterprise, contracts

Suggested Citation

Jensen, Michael C. and Meckling, William H., Can the Corporation Survive? (January 30, 1978). Financial Analysts Journal, Vol. 31, No. 1, pp. 31-37, January/February 1978, Harvard Business School NOM Unit Working Paper No. 1978, Available at SSRN: https://ssrn.com/abstract=244155 or http://dx.doi.org/10.2139/ssrn.244155

Michael C. Jensen (Contact Author)

Harvard Business School ( email )

Soldiers Field
Negotiations, Organizations & Markets
Boston, MA 02163
United States

HOME PAGE: http://drfd.hbs.edu/fit/public/facultyInfo.do?facInfo=ovr&facId=6484

SSRN ( email )

United States

HOME PAGE: http://ssrn.com/author=9

National Bureau of Economic Research (NBER) ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

European Corporate Governance Institute (ECGI) ( email )

c/o the Royal Academies of Belgium
Rue Ducale 1 Hertogsstraat
1000 Brussels
Belgium

Harvard University - Accounting & Control Unit ( email )

Soldiers Field
Boston, MA 02163
United States

William H. Meckling

Simon School, University of Rochester (Deceased)

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
2,039
Abstract Views
15,973
Rank
14,516
PlumX Metrics