| Author: | Rajan, R. G. Zingales, L. |
| Title: | The Influence of the Financial Revolution on the Nature of Firms |
| Journal: | American Economic Review
2001 : MAY, VOL. 91:2, p. 206-211 |
| Index terms: | FINANCE ORGANIZATIONAL STRUCTURE CHANGE |
| Language: | eng |
| Abstract: | In this article the authors focus on the impact the financial revolution has had on the way firms are organized and managed, and on the policy consequences. To do this, the authors first need to understand what firms are and what drives their organizational structure. A caveat is in order at the outset. Finance is not the only force transforming the nature of firms in the last two decades: deregulation and technological change have also played big roles. In the conclusion the authors state that as a result of the financial revolution, links between the firms may be much weaker than in the past, and conversely, links between firms, tied together by complementary technologies, may be stronger. |
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