Miscellaneous Organizational Links

16 July 2010 at 12:22 am 3 comments

| Peter Klein |

Add to: Facebook | Digg | Del.icio.us | Stumbleupon | Reddit | Blinklist | Twitter | Technorati

Entry filed under: Corporate Governance, Ephemera, Financial Markets, Management Theory, Strategic Management, Theory of the Firm. Tags: .

Mises Quote of the Day “De Gustibus Non Est Disputandum”?

3 Comments Add your own

  • 1. Avi  |  16 July 2010 at 2:19 pm

    Prof. Klein,

    I am curious to know your views on the first one ( what the heck is a publicly traded private-equity firm anyway)

    Especially in view of this –

    Michael Jensen (the father of agency cost theory) said that Schwarzman has created a massive negative externality for other PE firms (by taking BlackStone public). See the link below.

    http://papers.ssrn.com/sol3/Delivery.cfm/SSRN_ID1117866_code9.pdf?abstractid=963530

    http://papers.ssrn.com/sol3/Delivery.cfm/SSRN_ID1117866_code9.pdf?abstractid=963530&rulid=245853&mirid=1

    Avi

  • 2. k  |  16 July 2010 at 5:59 pm

    I work in a Legal Philosophy Institute. It was established in 1974. Here w have 4 Institutes no one in law even we work in a Law School. At the time there were 6 members. 5 prima donnas and the jealous wife on one of them. So there was a Director and 5 section chiefs, So there were to Muchos caciques y ningun indio,( how that expression survives the tough police?). Currently of the non retired members only two out of 14 members dont boast of a title., there are now subsections with their chiefs.
    So the reason could be only ego massaging

  • 3. Peter Klein  |  17 July 2010 at 11:01 pm

    Avi, at first glance, I agree with Jensen — the idea of taking one of those firms public, when their privateness, and consequent protection from public (and regulatory) scrutiny, is a main part of their competitive advantage — makes little sense. OTOH, diversified LBO associations are very much like conglomerate, even when they remain private, as noted in a well-known (though strangely unpublished) paper by Baker and Montgomery (http://www.hbs.edu/research/pdf/10-024.pdf). One difference between LBO associations and publicly traded conglomerates is that the former are unable to shift cash flows among portfolio companies (due to legal restrictions associated with raising funds). Perhaps raising some funds through public equity markets allows firms like KKR to combine some of the best features of private equity with some of the internal-capital-market advantages of diversified public companies — a new kind of hybrid organization, in other words. But I’m just speculating.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Trackback this post  |  Subscribe to the comments via RSS Feed


Authors

Nicolai J. Foss | home | posts
Peter G. Klein | home | posts
Richard Langlois | home | posts
Lasse B. Lien | home | posts

Guests

Former Guests | posts

Networking

Recent Posts

Categories

Feeds

Our Recent Books

Nicolai J. Foss and Peter G. Klein, Organizing Entrepreneurial Judgment: A New Approach to the Firm (Cambridge University Press, 2012).
Peter G. Klein and Micheal E. Sykuta, eds., The Elgar Companion to Transaction Cost Economics (Edward Elgar, 2010).
Peter G. Klein, The Capitalist and the Entrepreneur: Essays on Organizations and Markets (Mises Institute, 2010).
Richard N. Langlois, The Dynamics of Industrial Capitalism: Schumpeter, Chandler, and the New Economy (Routledge, 2007).
Nicolai J. Foss, Strategy, Economic Organization, and the Knowledge Economy: The Coordination of Firms and Resources (Oxford University Press, 2005).
Raghu Garud, Arun Kumaraswamy, and Richard N. Langlois, eds., Managing in the Modular Age: Architectures, Networks and Organizations (Blackwell, 2003).
Nicolai J. Foss and Peter G. Klein, eds., Entrepreneurship and the Firm: Austrian Perspectives on Economic Organization (Elgar, 2002).
Nicolai J. Foss and Volker Mahnke, eds., Competence, Governance, and Entrepreneurship: Advances in Economic Strategy Research (Oxford, 2000).
Nicolai J. Foss and Paul L. Robertson, eds., Resources, Technology, and Strategy: Explorations in the Resource-based Perspective (Routledge, 2000).

Follow

Get every new post delivered to your Inbox.

Join 244 other followers