Business Ethics Quarterly 21 (3):445-471 (2011)
|Abstract||A key factor in the decision to convert a publicly owned company to private status is the expectation that value will be created, providing the firm with rent. These rents have implications regarding the property rights of the firm’s capital-contributing constituencies. We identify and analyze the types of rent associated with the newly private firm. Compared to public firms, going private allows owners the potential to partition part of the residual risk to bond holders and employees, rendering them to be co-residual risk bearers with owners. We propose that new promotion-based contracts with bond holders and employees, reflecting their particular investments, be negotiated as the firm migrates from public to private status. These contracts should acknowledge the firm’s intent to maximize shareholder value and its need to take the risks necessary to do so, but support that the firm’s survival not be undermined due to its possibly opportunistic owners|
|Keywords||No keywords specified (fix it)|
|Through your library||Configure|
Similar books and articles
Marguerite Schneider & Alix Valenti (2009). Does A Company's “Going Private” Tend to Harm Its Stakeholders? A Contingency-Based Approach to Stakeholder Effects. Proceedings of the International Association for Business and Society 20:337-347.
Marguerite Schneider & Alix Valenti (2008). The Effects of “Going Private” on Corporate Financial and Corporate Social Performance. Proceedings of the International Association for Business and Society 19:236-245.
Ran Zhang, Zabihollah Rezaee & Jigao Zhu (2010). Corporate Philanthropic Disaster Response and Ownership Type: Evidence From Chinese Firms' Response to the Sichuan Earthquake. Journal of Business Ethics 91 (1):51 - 63.
Peter Vallentyne (2001). Self-Ownership. In Laurence Becker & Charlotte Becker (eds.), Encyclopedia of Ethics, 2nd edition. Garland Publishing.
Vincent Norcia (1988). Mergers, Takeovers, and a Property Ethic. Journal of Business Ethics 7 (1-2):109 - 116.
Edmund F. Byrne (1988). Building Community Into Property. Journal of Business Ethics 7 (3):171 - 183.
Kevin Morrell & Ian Clark (forthcoming). Private Equity and the Public Good. Journal of Business Ethics.
Jeremy Waldron (1990). The Right to Private Property. Clarendon Press.
Larry May (1986). Corporate Property Rights. Journal of Business Ethics 5 (3):225 - 232.
Runa Sarkar (2007). Policy Approaches to Induce Corporate Social Responsibility in Public and Private-Sector Firms in Developing Countries. International Corporate Responsibility Series 3:231-252.
Murray Hofmans-Sheard (2005). Preserving Common Rights Within Private Property. Philosophy in the Contemporary World 12 (2):3-9.
Thomas F. McMahon (1986). Models of the Relationship of the Firm to Society. Journal of Business Ethics 5 (3):181 - 191.
Amos Witztum (2005). Property Rights and the Right to the Fruits of One's Labor: A Note on Adam Smith's Jurisprudence. Economics and Philosophy 21 (2):279-289.
John T. Sanders (2002). Projects and Property. In David Schmidtz (ed.), Robert Nozick. Cambridge University Press.
Sorry, there are not enough data points to plot this chart.
Added to index2011-12-01
Total downloads1 ( #274,830 of 549,071 )
Recent downloads (6 months)1 ( #63,317 of 549,071 )
How can I increase my downloads?