In this volume, Michael Jensen and his collaborators present the foundations of an integrated theory of organizations. The theory assumes: that organizations are equilibrium systems that, like markets, can be influenced but cannot be told what to do; that human beings are rational and self-intereste[...]
This collection examines the forces, both external and internal, that lead corporations to behave efficiently and to create wealth. Corporations vest control rights in shareholders, the author argues, because they are the constituency that bears business risk and therefore has the appropriate incent[...]