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Organizational Change within the Stockbroking Industry: A Contracting Perspective
Author(s) -
AITKEN MICHAEL,
CZERNKOWSKI ROBERT
Publication year - 1991
Publication title -
abacus
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.632
H-Index - 45
eISSN - 1467-6281
pISSN - 0001-3072
DOI - 10.1111/j.1467-6281.1991.tb00261.x
Subject(s) - coase theorem , deregulation , perspective (graphical) , equity (law) , business , organizational change , work (physics) , industrial organization , economics , market economy , transaction cost , finance , public relations , law , political science , mechanical engineering , artificial intelligence , computer science , engineering
Teece (1982) extended Coase's (1937) theory of the firm to explain firm amalgamations. This explanation is centred around three fundamental constructs: excess capacity, market imperfections and the nature of assets, together with the frequency of their exchange. This paper provides an application of Teece's work to explain recent organizational change within the stockbroking industry in Australia and concludes by developing testable explanations of why, following deregulation, stockbroking firms countenanced moves by financial institutions, particularly banks, to acquire large equity positions.