Organizations as Producers of Operating Product Flows to Members of Society

This article appraises a new empirical perspective about organizations, which disputes the mainstream economic view expressed in standard economic and financial economic textbooks. The mainstream view claims that organizations exist to increase their owners/shareholders value (wealth), and organizat...

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Main Author: Tiago Cardao-Pito
Format: Article
Language:English
Published: SAGE Publishing 2017-08-01
Series:SAGE Open
Online Access:https://doi.org/10.1177/2158244017724492
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spelling doaj-a60d2972e83e4488908633b24e1b3db92020-11-25T03:24:44ZengSAGE PublishingSAGE Open2158-24402017-08-01710.1177/2158244017724492Organizations as Producers of Operating Product Flows to Members of SocietyTiago Cardao-Pito0University of Strathclyde, Glasgow, ScotlandThis article appraises a new empirical perspective about organizations, which disputes the mainstream economic view expressed in standard economic and financial economic textbooks. The mainstream view claims that organizations exist to increase their owners/shareholders value (wealth), and organizations’ operating activities could be dissociated from financial and investing activities (separability assumption). To the intangible flow theory, (a) the major aim of organizations is to deliver flows of operating products to members of society. These operating product flows are vital for human survival and existence. Thus, (b) operating, investing, and financing decisions are not randomly associated. I have studied 21,108 firms listed in the stock exchanges of 10 countries (i.e., Australia, Canada, China, Germany, Japan, Malaysia, Singapore, South Korea, the United Kingdom, and the United States) at the beginning of the 21st century (2000-2011). These are stock exchanges with many listed firms, ranging from 679 firms in Singapore to 4,440 firms in Japan. Organizations’ operating, investing, and financial decisions seem to be actually connected, as suggested by the intangible flow theory.https://doi.org/10.1177/2158244017724492
collection DOAJ
language English
format Article
sources DOAJ
author Tiago Cardao-Pito
spellingShingle Tiago Cardao-Pito
Organizations as Producers of Operating Product Flows to Members of Society
SAGE Open
author_facet Tiago Cardao-Pito
author_sort Tiago Cardao-Pito
title Organizations as Producers of Operating Product Flows to Members of Society
title_short Organizations as Producers of Operating Product Flows to Members of Society
title_full Organizations as Producers of Operating Product Flows to Members of Society
title_fullStr Organizations as Producers of Operating Product Flows to Members of Society
title_full_unstemmed Organizations as Producers of Operating Product Flows to Members of Society
title_sort organizations as producers of operating product flows to members of society
publisher SAGE Publishing
series SAGE Open
issn 2158-2440
publishDate 2017-08-01
description This article appraises a new empirical perspective about organizations, which disputes the mainstream economic view expressed in standard economic and financial economic textbooks. The mainstream view claims that organizations exist to increase their owners/shareholders value (wealth), and organizations’ operating activities could be dissociated from financial and investing activities (separability assumption). To the intangible flow theory, (a) the major aim of organizations is to deliver flows of operating products to members of society. These operating product flows are vital for human survival and existence. Thus, (b) operating, investing, and financing decisions are not randomly associated. I have studied 21,108 firms listed in the stock exchanges of 10 countries (i.e., Australia, Canada, China, Germany, Japan, Malaysia, Singapore, South Korea, the United Kingdom, and the United States) at the beginning of the 21st century (2000-2011). These are stock exchanges with many listed firms, ranging from 679 firms in Singapore to 4,440 firms in Japan. Organizations’ operating, investing, and financial decisions seem to be actually connected, as suggested by the intangible flow theory.
url https://doi.org/10.1177/2158244017724492
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