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 ?rm 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, ?nance, 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

Wm. Dennis Huber received a DBA in international business, accounting, ?nance, and economics from the University of Sarasota, Florida; a JD, an MBA in accounting and ?nance, 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 Bu?alo. 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 certi?ed public accountant and admitted to the New York Bar. He has taught at universities in the U.S., Canada, Mexico, and the Middle East.