| Author/Presenter |
Frank Milne (Queen's University) |
| Co-author |
David Kelsey (University of Birmingham) |
| Title |
Imperfect Competition and Corporate Governance |
| Abstract |
This paper studies that corporate governance when a firm faces imperfect markets for products and/or inputs. We find that the choice of constitution for the firm can effect the equilibrium in the product (or input) markets. This enables us to endogenise the objective function of the firm. The constitution of the firm can either be chosen by the founder to maximise the value at which he can sell the firm or it can be chosen by a social planner. The model can be used to examine the effects of encouraging stakeholder representation. |