- Consulting Editors
- Introduction: The Good, The Bad, And The Ugly
- The Modern Capitalist World Economy: A Historical Overview
- Legal Institutions and Economic Development
- Capital Markets and Financial Politics: Preferences and Institutions
- The Four Types of Capitalism, Innovation, and Economic Growth
- The Dynamics of Capitalism
- The Role of Finance in Economic Development: Benefits, Risks, and Politics
- Property Rights and Capitalism
- Management and Governance of the Business Enterprise: Agency, Contracting, and Capabilities Perspectives
- Capitalism as A Mixed Economic System
- Monopoly Capitalism
- Agency Problems and the Fate of Capitalism
- Executive Compensation: Governance and the Financial Crisis
- Bubbles in Asset Prices
- Mergers and the Market for Corporate Control
- Dispersed Ownership: The Theories, the Evidence, and the Enduring Tension between “Lumpers” and “Splitters”
- The East Asian (mostly Japanese) model of Capitalism
- Refounding Capitalism
- Name Index
- Subject Index
Abstract and Keywords
This article discusses agency problems and capitalism. It suggests that real social costs of agency problems lie deeper, in the inner workings of the economy. Inefficient resource allocation by firms costs money, as do the monitoring and control mechanisms that might limit those problems. Some level of agency costs is thus unavoidable. But both firms and economies can seek ways to reduce unavoidable agency costs.
Randall Morck is Stephen A. Jarislowski Distinguished Chair in Finance and University Professor at the University of Alberta and a Research Associate of the National Bureau of Economic Research. He has published widely on corporate valuations, business groups, family firms and corporate lobbying in the Review of Economics and Statistics, Journal of Finance, Journal of Economic Literature and other leading journals.
Bernard Yeung is Stephen Riady Distinguished Professor and Dean at NUS Business School, National University of Singapore.
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