haku: @indexterm Corporate finance / yhteensä: 722
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| Tekijä: | Maug, E. |
| Otsikko: | Corporate control and the market for managerial labour: On the decision to go public |
| Lehti: | European Economic Review
1996 : APR, VOL. 40:3-5, p. 1049-1056 |
| Asiasana: | CORPORATE FINANCE HUMAN CAPITAL MANAGERS |
| Kieli: | eng |
| Tiivistelmä: | The paper analyzes some of the trade-offs involved in the decision to go public. The main point is that entrepreneurs go public to fund larger projects, but lose discretion over decisions by becoming accountable to outside investors. The analysis focuses on succession and recruiting problems and assumes that the major source of private benefits of control is connected with investments in human capital. Firms' control structure influences their decision to search new managers. This creates an externality btw. firms and equilibria can be Pareto ranked, such that the emergence of a superior control structure for all firms is inhibited by coordination failure. |
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