The Levitating Firm.

The article discusses the concept of "levitating firms," which refers to corporations that own shares in one another, creating a network that diminishes market discipline and allows management to operate without accountability to shareholders. This phenomenon, termed "concatenated ownership," leads...

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Detalles Bibliográficos
Publicado en:Independent Review Vol. 30; no. 1; pp. 97 - 118
Autor principal: KOPPL, ROGER
Formato: Artículo
Publicado: Independent Institute Summer2025
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        atl: The Levitating Firm.
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        au: KOPPL, ROGER
        affil:
          Professor of finance in the Whitman School of Management of Syracuse University
          Associate director of the Whitman School's Institute for an Entrepreneurial Society
      su:
        Business & politics
        Businesspeople
        Stockholder wealth
        Stocks (Finance)
        Investment Company Act of 1940
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        subj:
          Business & politics
          Businesspeople
          Stockholder wealth
          Stocks (Finance)
          Investment Company Act of 1940
      ab: The article discusses the concept of "levitating firms," which refers to corporations that own shares in one another, creating a network that diminishes market discipline and allows management to operate without accountability to shareholders. This phenomenon, termed "concatenated ownership," leads to a separation of ownership from control, enabling corporate management to prioritize their interests over those of shareholders, contrary to the principles of shareholder capitalism. The author argues that this structure undermines consumer sovereignty and promotes stakeholder capitalism, which is portrayed as a misguided response to the perceived shortcomings of shareholder capitalism. The article critiques the ideological shift towards stakeholder capitalism, suggesting it serves managerial interests rather than maximizing shareholder wealth, and calls for reforms to address the issues stemming from corporate self-ownership.
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      doctype: Article
      src: R
    language: English
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