The book enhances current economic understanding of the firm as an institution and an organization, looking beyond the narrow boundaries of neoclassical economics to an interdisciplinary approach based on accounting and law as well as economics itself. It represents the first synthesis of the authors' research work on the subject and provides the groundwork for the development of a comprehensive framework centred on the firm as an entity. The volume starts with a synthesis and a critique of the current state of the different economic theories of the firm and further develops them through new insights and neglected lessons from different traditions of thought. The economic theory and analysis of the firm is given new life here by looking at the firm as a whole: as an institution and an organization, which has special functions and a distinct role in the economy and society.
The collected book enhances current economic understanding of the firm as an institution and an organization, looking beyond the narrow boundaries of neoclassical economics to an interdisciplinary approach integrating accounting with law and economics. It represents the first synthesis of the authors' research work on the subject and provides the groundwork for the development of a comprehensive framework centred on the firm as an enterprise entity.The volume starts with a synthesis and a critique of the current state of the theory of the firm and further develops them through new insights and neglected lessons from different traditions of thought. The economic theory and analysis of the firm is given new insights here by looking at the firm as a whole and a dynamic system: as an institution and an organization, which has special functions and a distinct role in the economy and society. The current economic theories of the firm leaves some key issues fundamentally open. Recent crises in corporate governance and disclosure highlight the deficiencies and shortcomings of received approaches. The managerial and enforcement recommendations they advocate imply poor policy and sometimes huge economic and societal losses. In fact, at the time of high theory, great scholars have already raised the issues of the firm and suggested challenging ways to understand its role in the economy and society.In this context, the contribution of the book consists in: (i) general essays, that pay attention to these insightful lessons from the past that presently are at least partially neglected; (ii) specific essays, that contribute to the enhancement of the interdisciplinary perspective by exploring its consequences and implications for accounting, ontology, law and economics, business finance, and the governance of the firm as an enterprise entity; and (iii) reprints of often rare or neglected essays by H. Simon, M. Shubik, R. Coase, A.A. Berle jr., R.N. Anthony, J.H. Stauss, that allow the reader to rediscover the work of previous authors, issues and ideas, and shall prove to be fundamental in enhancing the interdisciplinary approach offered by the collection.
This book advances a real entity theory of company law, in which the company is a legal entity which acts autonomously in law, and company law establishes procedures facilitating autonomous organisational decision-making. The theory builds on the insight that organisations or firms are a social phenomenon outside of the law and that these are autonomous actors in their own right. They are more than the sum of the contributions of their participants and they act independently of the views and interests of their participants. This occurs because human beings change their behaviour when they act as members of a group or an organisation; in a group we tend to develop and conform to a shared standard, and when we act in organisations habits, routines, processes, and procedures form and a culture emerges. These take on a life of their own affecting the behaviour of the participants. Participants can affect organisational behaviour but this takes time and effort. Company law finds this phenomenon and supplies it with a structure supporting autonomous action by organisations. The real entity theory advanced in this book explains company law as it stands at a positive level. Legal personality overcomes the problems that organisations are social rather than brute facts and that there is no unique physical manifestation permanently associated with an organisation. The corporate constitution is not a contract - it is best characterised as an instrument adopted on a statutory basis through private action. Shareholders cannot limit the capacity of companies or the authority of the board to bind the company in contract and companies are liable in tort and crime. The statute creates roles for shareholders, directors, a company secretary, and auditors and so facilitates a process leading to organisational action. The law also integrates the interests of creditors and stakeholders.
A comprehensive account of the contribution and failings of one of the most important institutions in the world - the corporation. It gives an accessible and insightful analysis of why the problems of the corporation - financial crises, mismanagement, poverty, and pollution - are increasing and what can be done to address them.
This paper intends to depart from a critique of the nexus of contracts theory of the firm endowed with its moral personification to propose some theoretical foundations of the firm as a real entity. Some old legal views of the corporation are mobilized to complete the conceptual vacuity of economic theories. This provides crucial insights for modern complex organizations such as the network firm. The integrating and unifying role of intra-network power relationships is then emphasized and some law and economics of the network-firm are ultimately proposed to clarify the argument that the network-firm - as the firm stricto sensu - is a singular real entity composed from distinct legal entities.
Strategic Management (2020) is a 325-page open educational resource designed as an introduction to the key topics and themes of strategic management. The open textbook is intended for a senior capstone course in an undergraduate business program and suitable for a wide range of undergraduate business students including those majoring in marketing, management, business administration, accounting, finance, real estate, business information technology, and hospitality and tourism. The text presents examples of familiar companies and personalities to illustrate the different strategies used by today's firms and how they go about implementing those strategies. It includes case studies, end of section key takeaways, exercises, and links to external videos, and an end-of-book glossary. The text is ideal for courses which focus on how organizations operate at the strategic level to be successful. Students will learn how to conduct case analyses, measure organizational performance, and conduct external and internal analyses.
Dr Talbot traces the history of the fundamental principles of English company law, including the doctrine of separate corporate personality, director’s duties, minority protection and the doctrine of ultra vires from both a black letter and contextual perspective. Relevant aspects of the Companies Act 2006 are thoroughly examined. Drawing on the influence of American law and scholarship, the book considers the ideas which have informed corporate governance in England . It includes a case study of mutual building societies’ march to the market and corporate identity. The hybrid approach adopted in the text provides a contextual and critical framework in which to understand company law as well as a broad picture in black letter law terms. The aim is to invigorate what many students and academics consider a dry subject by uncovering the social factors which continue to inform this area of law - and the political nature of the law itself. Dr Talbot maintains that modern company law is shaped by three main factors – economics, ideology and existing law. The state of the law at any one time is determined by the constantly shifting relationship between these factors.
The recent financial crisis has sparked debates surrounding the nature and role of accounting in informing capital markets and regulatory bodies about the financial performance and position of a firm. These debates have drawn attention to the broader implications of accounting for the economy and society. Accounting and Business Economics brings together leading international scholars to examine the current state of accounting theory and its fundamental connection with the economics and finance of firms, viewing the business entity from not only accounting, but also national, economic, social, political, juridical, anthropological, and moral points of view.
