Managerial capitalism in retrospect

the long version

This is an abridged and edited version of the author's classic Economic Theory of Managerial Capitalism, first published by Macmillan in 1964. The author has cut out redundant text and mathematics, leaving the core of the prose and the theoretical structure of the original argument. He has also included reprints of some later papers which have helped to synthesize the argument. In addition, in key areas he has written brief commentaries relating to subsequent research developments. The original book was the first attempt by a professional economist to make a formal theory of the behaviour and growth of the modern large-scale 'managerial' corporation based on a realistic assessment of the sociological and institutional environment. The result was a closed model which determined the long-run growth rates of individual firms on the basis of the financial and market environment on the one hand, and the needs, interests and aspirations of both managers and shareholders on the other. Managers, in particular, traded desires for growth against fears of takeover.