1st Edition
Economics, Capitalism, and Corporations Contradictions of Corporate Law, Economics, and the Theory of the Firm
This book is a continuation of Corporate Law and the Theory of the Firm: Reconstructing Corporations, Shareholders, Directors, Owners, and Investors. The author extends his analysis of contract law, property law, agency law, trust law, and corporate statutory law and applies that analysis to defy conventional concepts and theories in economics, finance, investment, and accounting and expose the artificial boundaries established by decades of research founded on indefensible assumptions and fallacious conclusions.
Using the Humpty Dumpty principle, where words mean what the authors want them to mean, economists have created "strange new worlds" where contract law, property law, agency law, and corporate statutory law no longer apply.
The author dismantles the theory of the firm by proving the theory of the firm wilfully and intentionally ignores fundamental contract law, property law, agency law, and corporate statutory law. Contrary to the theory of the firm, shareholders do not own corporations, directors are not agents of shareholders, and shareholders are not investors in corporations.
The author proves that by property law and corporate law, capital is not privately owned by capitalists but by corporations. Entire economic and social systems have been constructed that have no basis in law. With the advent of publicly traded corporations, the capital is there, but both capitalists and capitalism have been rendered extinct.
This book will appeal to researchers and graduate and upper-level undergraduate students in economics, finance, accounting, law, and sociology, as well as legal scholars, attorneys and accountants.
Other Publications by this Author
Acknowledgments
Prologue
Chapter 1 Review of Corporations and Corporate Law, Contract Law,
Property Law, Agency Law, and Trust Law
Introduction
Corporations: Creation, Governance and Operations of Corporations, and Ownership and Control of Corporations
Creation of Corporations
Governance and Operations of Corporations
Ownership and Control of Corporations
Corporations and Contract Law, Property Law, Agency Law, and Trust Law
Corporations and Contract Law
Corporations and Property Law
Corporations and Agency Law
Corporations and Trust Law
Chapter Summary
Bibliography
Endnotes
Part I Corporations, Owners of Shares and Investors in Shares: Economic, Finance, Investment, and Accounting Considerations
Chapter 2 Corporations and Economic Considerations
Introduction
Corporations and Microeconomic Considerations
Supply
Scarce Resources and Resources of Production
Production Functions and Allocation of Resources of Production
Production Costs and Resources of Production
Corporations and Macroeconomic Considerations
Gross Domestic Product and National Income
Savings and Investment
Chapter Summary
Bibliography
Endnotes
Chapter 3 Corporations and Finance Considerations: Corporations, Owners of Shares, and Investors in Shares
Introduction
Finance Considerations: Corporations
Corporations: Financial Capital, Securities Laws, and the Securities Market
Corporations: Financial Capital, Securities Markets, and Scarce Resources
Finance Considerations: Owners of Shares and Investors in Shares
Owners of Shares and Investors in Shares: Financial Capital and Securities Markets
Owners of Shares and Investors in Shares: Scarce Resources
Chapter Summary
Bibliography
Endnotes
Chapter 4 Corporations and Investment Considerations: Corporations, Owners of Shares, and Investors in Shares
Introduction
Investment Considerations: Corporations
Corporate Investment and Economics
Corporate Investment and Financial Statements
Weighted Average Cost of Financing
Investment Considerations: Owners of Shares and Investors in Shares
Owners of Shares and Investors in Shares
Financial Asset Pricing Model
Chapter Summary
Bibliography
Endnotes
Chapter 5 Corporations and Accounting Considerations: Corporations, Owners of Shares, and Investors in Shares
Introduction
Accounting Considerations: Corporations and Financial Reporting
Corporations and Corporate Financial Statements
Corporations and the "Capital Account"
Accounting Considerations: Owners of Shares and Investors in Shares
Owners of Shares, Investors in Shares, and Corporate Financial Statements
Owners of Shares and Investors in Shares: The "Capital Account" Revisited
Chapter Summary
Bibliography
Endnotes
PART II The Nature of the Firm and Theory of the Firm
Chapter 6 The Nature of the Firm
Introduction
Multiple Natures of the Firm
Chapter Summary
Bibliography
Endnotes
Chapter 7 The Theory of the Firm
Introduction
The Theory of the Firm
Agency Theory, Agency Costs, and Transaction Costs
Nexus of Contracts
Property Rights
Incomplete Contracts
Chapter Summary
Bibliography
Endnotes
PART III Capital, Capitalism, and the Communist Manifesto
Chapter 8 Capital
Introduction
Types of Capital
Financial Capital
Physical/Productive/Industrial Capital: The Resource of Production
The Money-Commodity/Financial Capital-Physical Capital Cycle
The Capitalist/ Entrepreneur Cycle
The Corporate Cycle
Chapter Summary
Bibliography
Endnotes
Chapter 9 Capitalism
Introduction
The Origin and History of Capitalism
Karl Marx
Werner Sombart
Max Weber
Types of Capitalism
Financial Capitalism
Industrial Capitalism
Corporate Capitalism
Capitalism, Corporations, and the Theory of the Firm
Chapter Summary
Endnotes
Bibliography
Chapter 10 Marx: Capital, Capitalism, Capitalists, Corporations, and the Communist Manifesto
Introduction
Marx and Capital
Marx and Private Property
Marx and Financial Capital
Marx and Productive Capital
Marx and Capitalists
Marx and Capitalism
Marx and Corporations
Marx and the Communist Manifesto
Chapter Summary
Bibliography
Endnotes
Part IV The Contradictions of Economics and Corporate Law
Chapter 11 Review of the Contradictions of Corporate Law
Introduction
The Contradictions of Corporate Law
Shareholders are Owners of Corporations
Shareholders are Beneficial Owners
Shareholders are Residual Claimants/Residual Owners
Shareholders are Investors in the Corporation
The Contradictions of Agency Law and Corporate Law, and the Contradictions of Trust Law and Corporate Law
Directors are Agents of Shareholders
Directors are Trustees of Shareholders
Directors owe a Fiduciary Duty to Shareholders
Chapter Summary
Bibliography
Endnotes
Chapter 12 Contradictions of Corporate Law, Economics, Finance, Investment, Accounting, and the Theory of the Firm
Introduction
Contradictions of Corporate Law and Economics
Contradictions of Corporate Law, Finance, Investment, and Accounting
Contradictions of Corporate Law and the Theory of the Firm
Chapter Summary
Bibliography
Endnotes
Epilogue
Index
Biography
Wm. Dennis Huber received a DBA in international business, accounting, finance, and economics from the University of Sarasota, Florida; a JD, an MBA in accounting and finance, an MA in economics, an Ed.M., and an MS in public policy, and a BA in sociology and psychology from the State University of New York at Buffalo. He also has an LL.M. in homeland and national security law from the Western Michigan University Thomas M. Cooley School of Law. He is a certified public accountant and admitted to the New York Bar. He has taught at universities in the U.S., Canada, Mexico, and the Middle East.
"The book is very interesting starting from the idea itself to the well cited information in each chapter. It is straightforward, simple language, systematic in its presentation and at the same time eligible to be used for all levels of learning; undergrad/grad/researchers,etc., covered most of the important points in each topic, cleared out the confusion between the different laws (Agency law, Trust law and Corporate law...) and the difference between the nature of the firm and the theory of the firm…complete and well presented." — Dina Rady, Ph.D., American University and George Washington University
