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Why Do Corporations Exist?

Expected online publication date:  25 June 2026

Jang-Sup Shin
Affiliation:
National University of Singapore

Summary

Corporations are the engine of the modern economy, yet public debates are ideologically polarized between two extremes-shareholder value theory and stakeholder theory-and the real workings of corporations and their contributions to society are obscured. This book attempts to break the shackles of these two ideologies. It starts from the 'Two Corporate Axioms' that any reasonably well-informed person should accept, i.e., the dominance of corporations and the existence of market competition. It then derives the 'Eight Corporate Theorems' as logical extensions of the axioms and, based on these theorems, re-examines major issues surrounding corporations, including their purpose and governance. To make this construct more realistic, the book weaves the theorems into the story of an imaginary AI company, starting as a venture company and expanding eventually into a multi-planetary enterprise. This book concludes by offering a vision of the corporation as a long-term community for co-prosperity.

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Online ISBN: 9781009856508
Publisher: Cambridge University Press

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Why Do Corporations Exist?
  • Jang-Sup Shin, National University of Singapore
  • Online ISBN: 9781009856508
Available formats No formats are currently available for this content.
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Why Do Corporations Exist?
  • Jang-Sup Shin, National University of Singapore
  • Online ISBN: 9781009856508
Available formats No formats are currently available for this content.
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Save element to Google Drive

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.

Why Do Corporations Exist?
  • Jang-Sup Shin, National University of Singapore
  • Online ISBN: 9781009856508
Available formats No formats are currently available for this content.
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