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Cited by 848

The DOI matches its Crossref record; 27 of the 27 references it cites were found in a registry or an index.

Separation of Ownership and Control

Open access
Fama, Eugene F., Jensen, Michael C.·1998·SSRN Electronic Journal
DOI 10.2139/ssrn.94034
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Abstract

This paper analyzes the survival of organizations in which decision agents do not bear a major share of the wealth effects of their decisions. This is what the literature on large corporations calls separation of ownership and control. Such separation of decision and risk bearing functions is also common to organizations like large professional partnerships, financial mutuals and nonprofits. We contend that separation of decision and risk bearing functions survives in these organizations in part because of the benefits of specialization of management and risk bearing but also because of an effective common approach to controlling the implied agency problems. In particular, the contract structures of all these organizations separate the ratification and monitoring of decisions from the initiation and implementation of the decisions.

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Registry

Crossref · 10.2139/ssrn.94034

Cites

27 of 27 references verified0 citation errors · 0 not checkable

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Citations

Cites

Research works printed but not linked: 4

  1. Alfred D Chandler, 1980, Managerial Hierarchies: Comparative Perspectives on the Rise of the Modern Industrial Enterprise
  2. Edward S Herman, 1969, Conflict of Interest in the Savings and Loan Industry. A Study of of the Savings and Loan Industry. I. Friend
  3. Adam Smith, 1776, The Wealth of Nations
  4. Howard P Stettler, 1977, Auditing Principles

Cited by

See all 848

Metadata

Authors
Fama, E. F., & Jensen, M. C.
Venue
SSRN Electronic Journal
Publisher
Elsevier BV
Published
1998
ISSN
1556-5068 (ISSN-L)
DOI
10.2139/ssrn.94034
OpenAlex
W1983465456
Cited by
848
References
27
Type
posted content
Language
en
Open access
green

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Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).

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