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William Roy and Contemporary Corporation

William Roy's conception of the contemporary corporation focuses on the merger wave of the 1890's during which which many large firms turned to public capital markets to facilitate mergers. The change that occurred in corporations was when they went from a public sphere to a private sphere. Two sectors, manufacturing and financial, came together at this time. In this book Roy criticizes the efficiency theory and relies heavily on the power theory. He felt that with the efficiency theory, anything that was done was done to maximize profits at that given time in history. The power theory looks back on history and relies heavily upon it. The main transformation that has occurred in corporate America has been the transformation of the ownership. Now corporations are owned by many people, (socialized capital) instead of an individual. "Corporations were developed to undertake jobs that were not rational or not appropriate from the perspective of the individual businessman." (Roy, 41) This is where the transformation of public too private took place.

The corporation that exists today has been contingent and developed from pre-existing forms. It evolved from the public corporation. The emergence of the railroad, the pow

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Some common words found in the essay are:
William Roy, Camden Amboy, William Roy's, Pennsylvania Ohio, efficiency theory, power theory, public corporations, competitive process, corporation roy, relies heavily, socialized capital, public accountability, rational people, corporate form,
Approximate Word count = 1438
Approximate Pages = 6 (250 words per page double spaced)

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