A couple of “industries”, audit and management consultancy, which have deliberately entwined themselves round each other and called themselves ‘professional services’, have developed strongly monopolistic tendencies. The degree of industry concentration is truly remarkable: the four leading firms employ around 650,000 people, earn revenues of over US$100 billion, and take around 80% of the global [...]
Posted on July 19, 2010, 8:54 am, by Gordon Pearson, under
Bank Bonuses,
Corporate Governance,
Corporate Ownership,
Economic History,
Financial Reporting Council,
Free Market Capitalism,
Moral Hazard,
Shareholder Value.
“The directors of … companies, being the managers of other people’s money rather than their own, it cannot well be expected, that they should watch over it with the same anxious vigilance … Negligence and profusion must always prevail … in the management of the affairs of such a company.” So wrote Adam Smith 250 [...]
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