This book explores the revolutionary development of the theory of the firm over the past 35 years. Despite rapid progress in the field, new developments in the microeconomic and industrial organization literature have been relatively scant. This book attempts to redress the balance by providing a comprehensive overview of the theory of the firm before moving on to explore firms and the organization of their economic activities.
The contributors investigate the impact of ownership structure and board composition on firm performance, and examine how the institutional framework of an economy affects investment decisions. More specifically, detailed studies of topics including contracts, authority, competence blocs, institutional impacts and corporate governance mechanisms are presented.
This unique blend of financial economics and industrial organization perspectives on the corporate firm will prove a stimulating read for scholars and researchers of economics, business administration and law.
Edited by Per-Olof Bjuggren, Professor of Economics, Joenkoeping International Business School, Joenkoeping University, Sweden and Dennis C. Mueller, Professor of Economics, University of Vienna, Austria
Contents: Preface 1. Introduction: The Modern Firm, Corporate Governance and Investment Per-Olof Bjuggren and Dennis C. Mueller PART I: KEY ISSUES 2. Opening the Black Box of Firm and Market Organization: Antitrust Oliver E. Williamson 3. The Corporation: An Economic Enigma Dennis C. Mueller PART II: THE THEORY OF THE FIRM FROM AN ORGANIZATIONAL PERSPECTIVE 4. A Contractual Perspective of the Firm with an Application to the Maritime Industry Per-Olof Bjuggren and Johanna Palmberg 5. The Use of Managerial Authority in the Knowledge Economy Kirsten Foss 6. Competence and Learning in the Experimentally Organized Economy Gunnar Eliasson and Asa Eliasson PART III: INVESTMENTS AND THE LEGAL ENVIRONMENT 7. Corporate Governance and Investments in Scandinavia - Ownership Concentration and Dual-Class Equity Structure Johan E. Eklund 8. The Cost of Legal Uncertainty: The Impact of Insecure Property Rights on Cost of Capital Per-Olof Bjuggren and Johan E. Eklund 9. The Stock Market, the Market for Corporate Control and the Theory of the Firm: Legal and Economic Perspectives and Implications for Public Policy Simon Deakin and Ajit Singh PART IV: THE BOARD, MANAGEMENT RELATIONS AND OWNERSHIP STRUCTURE 10. Institutional Ownership and Dividends Daniel Wiberg 11. Contracting Around Ownership: Shareholder Agreements in France Camille Madelon and Steen Thomsen 12. Board Governance of Family Firms and Business Groups with a Unique Regional Dataset Lluis Bru and Rafel Crespi 13. Better Firm Performance with Employees on the Board? R. Oystein Strom 14. The Determinants of German Corporate Governance Ratings Wolfgang Drobetz, Klaus Gugler and Simone Hirschvogl 15. Top Management, Education and Networking Mogens Dilling-Hansen, Erik Strojer Madsen and Valdemar Smith Index