Corporations

The Most Famous Article on the Theory of the Firm is Widely Misunderstood

Michael Jensen and William Meckling’s famous 1976 Journal of Financial Economics article has been cited nearly 100,000 times and is often regarded...

Public’s Perception of Large Corporations Has Direct Impact on the Public Support of Corporate Bailouts

A new Stigler Center working paper finds that the likelihood of someone signing an online petition or contacting their US senators to...

Holding Corporations and Executives Accountable Depends on Our Legal System

How can the law prevent and deter corporate wrongdoing? The answer might lie in identifying what factors are associated with greater wrongdoing...

Do Companies Invest In Corporate Social Responsibility At the Expense of Their Employees?

The past decade has seen companies increasing investments in initiatives of corporate social responsibility (CSR), such as donating a share of profits...

How Corporate Purpose Affects Firms

A company’s purpose is a core aspect of the organization: it influences the financial performance of company, and relates to its ownership...

Is Corporate Personhood to Blame for Money in Politics?

Just because corporations are “legal persons” doesn’t mean that they should get all of the same rights as human persons. Yet over...

How Companies Spin Off Environmental Liabilities to Avoid Legal Obligations

Environmental externalities are vexing for corporate decision makers, but some companies have figured out a way to deal with them: a spinoff....

Institution Man: How Corporations Came to Dominate the US Economy

In the first chapter of his book Transaction Man, Nicholas Lemann explores how Adolf Berle, author of The Modern Corporation and Private...

To Make a Difference, Businesses Must Have a Stake in Social Missions

Despite their promises to change the world for the better and remedy social ills, the truth is that corporations are rarely designed...

There Is a Direct Line from Milton Friedman to Donald Trump’s Assault on Democracy

Milton Friedman believed that corporations have a social responsibility to play within the rules of the game. But corporations aren’t just players...

LATEST NEWS

The Many Faces of Stigler’s Theory of Economic Regulation: Interest Group Politics Still Thrives—But Industry Often Comes Second

Stigler treats industry groups as the heavyweights in regulatory contests. But surprisingly often groups of farmers and workers knock them for a...

Why the FTC Should Consider Size in Drug Mergers

Large pharmaceutical firms retain their dominance through size-related advantages in three areas: contracting, marketing and selling, and financing. When reviewing pharmaceutical mergers,...

In FTC vs. Facebook, the Government Lost the First Round. It Could Still Win the Fight.

Despite some compelling allegations, a federal judge dismissed the FTC's antitrust complaint against Facebook due to the agency’s failure to explain how...

A New Antitrust Under Biden? Lessons From the Presidency of Theodore Roosevelt

The early history of the Sherman Antitrust Act offers relevant insights to contemporary debates on how to best enforce antitrust laws. In...

“This Isn’t the Kind of Journalism That Serves Democracy Best”: How Place and Privilege Came to Define American News

In an interview with ProMarket, University of Illinois at Urbana-Champaign professor Nikki Usher discusses how news in the US came to be...