A critique of business consolidation

The efficiencies gained from economies of scale are more than offset by inefficiencies created by bureaucratic infighting, turf battles between managers, and the disconnect between shareholders and management (which operate firms to maximize management compensation rather than shareholder returns).

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: