This paper reviews an alternative to the efficient markets approach that we and others have
recently pursued. Our approach rests on two assumptions. First, some investors are not fully …

The efficient markets hypothesis has been the central proposition in finance for nearly thirty
years. It states that securities prices in financial markets must equal fundamental values, …

In a corporation with many small owners, it may not pay any one of them to monitor the
performance of the management. We explore a model in which the presence of a large minority …

This paper reviews the evidence on takeover waves of the 1960s and 1980s, and discusses
the implications of this evidence for corporate strategy, agency theory, capital market …

The paper describes an artificial economy in which firms in different sectors make inventions
at different times but innovate simultaneously to take advantage of high aggregate demand. …

… Shleifer is from Harvard University. Vishny is from the University of Chicago. Prepared for
the Nobel Symposium on Law and Finance, Stockholm, August 1995. … Shleifer is from …

We present a simple model of an entrepreneur going public in an environment with poor
legal protection of outside shareholders. The model incorporates elements of Becker's (J. …

This paper attempts to explain the often lamented pursuit by investors of short-term capital
gains and the selection by firms of short-term investment projects. Our starting point is the …

Private ownership should generally be preferred to public ownership when the incentives to
innovate and to contain costs must be strong. In essence, this is the case for capitalism over …

In many countries, public sector institutions impose heavy burdens on economic life: heavy
and arbitrary taxes retard investment, regulations enrich corrupt bureaucrats, state firms …