Financial markets and the political structure of the enterprise

@inproceedings{Gintis1989FinancialMA,
  title={Financial markets and the political structure of the enterprise},
  author={Herbert Gintis},
  year={1989}
}
Abstract This paper argues that competitive financial markets disfavor democratic enterprises even assuming such enterprises suffer no allocational deficiencies. This conclusion follows from five assertions: (a) the democratic enterprise requires access to credit markets; (b) access to credit presupposes access to equity markets; (c) the democratic firm's optimal risk level is lower than that desired by stockholders; (d) the risk level assumed by the firm is costly to observe, subject to… CONTINUE READING

Citations

Publications citing this paper.
SHOWING 1-10 OF 16 CITATIONS