Corporate Law and Corporate Governance
Separation of Ownership and Control
Eugene F. Fama and Michael C. Jensen
- Year
- 1983
- Venue
- Journal of Law and Economics
- Level
- Advanced
Summary
Explains why complex organizations separate decision management from decision control. The paper links residual claims, risk bearing, monitoring, and board-like control structures to the survival of organizations in which ownership and control are divided.
Citation
Eugene F. Fama and Michael C. Jensen. "Separation of Ownership and Control." Journal of Law and Economics, 1983.
DOI: 10.1086/467037
BibTeX
@article{Fama1983Separation,
title = {Separation of Ownership and Control},
author = {Eugene F. Fama and Michael C. Jensen},
year = {1983},
journal = {Journal of Law and Economics},
doi = {10.1086/467037},
url = {https://www.journals.uchicago.edu/doi/10.1086/467037}
}