Understanding (Un)incorporated Business Forms
Volume: 12 Topics in Corporate Finance
Price: € 20.00
By J. McCahery and E. Vermeulen
2005, ISBN 90-77859-03-9
Part of the ongoing agenda of the Amsterdam Center for Corporate Finance (ACCF) is to analyze the ownership structure of corporations. The corporate structure, i.e. the legal form of the corporation, is an important manifestation of this. Several types of corporate structures can be identified: from (not-incorporated) partnership-type to fully incorporated forms. An important policy issue is whether business forms could be introduced that are more flexible, not incorporated, yet rooted in partnership and corporate law.
Flexibility in business forms could offer distinct benefits if it improves the competitiveness of firms. This has become more important in today’s dynamic environment. In particular, the increasing emphasis on innovation and entrepreneurship could ask for more tailored business forms.
The authors, Professor Joseph McCahery (University of Amsterdam, and incoming co-director of the ACCF) and professor Erik Vermeulen (Tilburg University) have been at the forefront of research on corporate forms. The authors strongly advocate the need for new and more efficient structures, and argue that that will create “new opportunities for both entrepreneurs and investors”.
The Amsterdam Center for Corporate Finance gladly dedicates this issue of its Topics in Corporate Finance series to such important topic. I hope you enjoy reading it.