TY  - UNPD
A1  - Schmidt, Reinhard H.
T1  - Corporate governance : the role of other constituencies ; paper presented at the Conference on Workable Corporate Governance: Cross Border Perspectives, held in Paris, March 17-19, 1997
T2  - Universität Frankfurt am Main. Fachbereich Wirtschaftswissenschaften: [Working paper series / Finance and accounting] Working paper series, Finance & Accounting ; No. 3
N2  - Paper Presented at the Conference on Workable Corporate Governance: Cross-Border Perspectives held in Paris, March 17-19, 1997 To appear in: A. Pezard/J.-M. Thiveaud: Workable Corporate Governance: Cross-Border Perspectives, Montchrestien, Paris 1997. The paper discusses the role of various constituencies in the corporate governance of a corporation from the perspective of incomplete contracts. A strict shareholder value orientation in the sense of a rule that at any time firm decisions should be made strictly in the interest of the present shareholders would make it difficult for the firm to establish long-term relationships as the potential partners would have to fear that, at a later stage of the co-operation, the shareholders or a management acting only on their behalf could exploit them because of the inevitable incompleteness of long-term contracts. One way of mitigating these problems is to put in place a corporate governance system which gives some active role to the other stakeholders or constituencies, or which makes their interests a well-defined element of the objective function of the firm. A commitment not to follow a policy of strict shareholder value maximization ex post can be efficient ex ante. Such a system would clearly differ from what is advocated by proponents of a "stakeholder approach", as it would limit the rights of the other constituencies to those which would have been agreed upon in a constitutional contract concluded between them and the founder of the firm at the time when long-term contracts are first established.
T3  - Working paper series / Johann-Wolfgang-Goethe-Universität Frankfurt am Main, Fachbereich Wirtschaftswissenschaften : Finance & Accounting - 3 
KW  - corporate governance
KW  - theory of the firm
KW  - incomplete contracts
KW  - Corporate Governance
KW  - Unternehmensverfassung
KW  - Unternehmenstheorie
KW  - Kontrakttheorie
Y1  - 1997
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/3835
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30-16584
SP  - 80
EP  - 98
PB  - Univ., Fachbereich Wirtschaftswiss.
CY  - Frankfurt am Main
ER  -