Mergers, takeovers, and a property ethic
The recent takeover and merger trend cries out for ethical evaluation. This essay proposes a model for evaluating them in terms of their impact on a firm's immediate stakeholders: investors, owners, management and employees. Since mergers and takeovers are ‘Transfers of Ownership of Firms’ (TOF...
| Main Author: | |
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| Format: | Electronic Article |
| Language: | English |
| Check availability: | HBZ Gateway |
| Interlibrary Loan: | Interlibrary Loan for the Fachinformationsdienste (Specialized Information Services in Germany) |
| Published: |
1988
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| In: |
Journal of business ethics
Year: 1988, Volume: 7, Issue: 1, Pages: 109-116 |
| Further subjects: | B
Private Firm
B Control Structure B Economic Growth B Property Ethic B Stock Price |
| Online Access: |
Volltext (lizenzpflichtig) |
| Summary: | The recent takeover and merger trend cries out for ethical evaluation. This essay proposes a model for evaluating them in terms of their impact on a firm's immediate stakeholders: investors, owners, management and employees. Since mergers and takeovers are ‘Transfers of Ownership of Firms’ (TOFs) they entail a property ethic of ownership, control, securing stakeholder interests, and defining which stakeholders should exercise these rights. I use the model to evaluate two fictional cases, a friendly merger and a hostile takeover. The results show that neither TOF serves all interests equitably. Since the control structure of the private firm is legitimized by its interest structure, I reason that both should be reformed. Both rest on a broader economic rationale; but it is controverted. Accordingly, the economic and ethical evaluation of TOFs, I conclude, both entail the democratic reform of the control structure of the firm., “A corporation represents far more than its current stock price; it embodies obligations to employees, customers, suppliers and communities.”, Robert S. Saul, Peers Merchant Bank |
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| ISSN: | 1573-0697 |
| Contains: | Enthalten in: Journal of business ethics
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| Persistent identifiers: | DOI: 10.1007/BF00382004 |
