The separation of ownership and control was first identified in 1932 by Adolph Berle and Gardiner Means
, in their book, The Modern Corporation and Private Property.
Berle and Gardiner Means
. Knight, in his book, explained that it was the uncertainty and not the risk (where some probability can be assigned), which made the firms profitable.
Discussions about good corporate governance derived from agency theory in 1932 when it was developed by Adolf Berle and Gardiner Means
. The concept of corporate governance can be summarized as a set of processes, customs, policies, laws, and institutions affecting the way an entity is managed and controlled in order to increase its performance and value.
Concern about this dates back at least to 1932 when Adolf Berle and Gardiner Means observed that large companies are primarily controlled by a new class of professional managers because ownership is dispersed among thousands of shareholders, each of whom owns only a small fraction of the shares.
* The Modern Corporation and Private Property, by Adolf Berle and Gardiner Means. New York, N.Y.: Macmillan, 1932.
Ironically, the vast separation of ownership from control in large modern corporations first identified by Adolph Berle and Gardiner Means
in 1932, may promote the maximization of social welfare by insulating corporate management from the myopic pursuit of shareholder goals.
Milton Friedman, Robert Reich, Adolf Berle and Gardiner Means
, among many others, provide the foundation for a substantial portion of the book.
This was the "managerial revolution," identified by Adolph Berle and Gardiner Means
in their 1932 landmark study of corporate governance.
It strongly attacks the view of corporate development propounded by Adolf Berle and Gardiner Means
. Berle and Means asserted that in the distant past there was an ideal type of corporation in which informed and vigorous shareholders actually ran the business.
In 1932, Adolph Berle and Gardiner Means
added that professional managers, not owners, exercised the day-to-day management of the corporation, necessitating a board of directors to protect shareholders' interests.
is the economist whose name always will be linked to that of Adolf Berle.
As an academic, braintruster, party leader, and diplomat, Adolf Berle played a significant role in shaping twentieth-century American history Before gaining fame as a member of Franklin Roosevelt's original Brain Trust, Berle had already participated in the Versailles Peace Conference and written with Gardiner Means
) the pathbreaking book, The Modern Corporation and Private Property (1932).