TY  - GEN
AB  - The principle of limited liability is one of the defining characteristics of modern corporate capitalism. It is also, we argue in this article, a powerful structural source of moral hazard. Engaging in a double conceptual genealogy, we investigate how the concepts of moral hazard and limited liability have evolved and diffused over time. We highlight two parallel but unconnected paths of construction, diffusion, moral contestation, and eventual institutionalization. We bring to the fore clear elective affinities between both concepts and their respective evolution. Going one step further, we suggest that both concepts have come to be connected through time. In the context of contemporary capitalism, limited liability has to be understood, we argue, as a powerful structural source of moral hazard. In conclusion, we propose that this structural link between limited liability and moral hazard is an important explanatory factor of the systemic instability of contemporary capitalism and, as a consequence, of a pattern of recurrent crises that are regularly disrupting our economies and societies.
AU  - Salles-Djelic, Marie-Laure
AU  - Bothello, Joel
DA  - 2013
DO  - 10.1007/s11186-013-9206-z
DO  - doi
ID  - 298024
L1  - https://repository.graduateinstitute.ch/record/298024/files/Theory-and-Society-Djelic-2013.pdf
L2  - https://repository.graduateinstitute.ch/record/298024/files/Theory-and-Society-Djelic-2013.pdf
L4  - https://repository.graduateinstitute.ch/record/298024/files/Theory-and-Society-Djelic-2013.pdf
LK  - https://repository.graduateinstitute.ch/record/298024/files/Theory-and-Society-Djelic-2013.pdf
N2  - The principle of limited liability is one of the defining characteristics of modern corporate capitalism. It is also, we argue in this article, a powerful structural source of moral hazard. Engaging in a double conceptual genealogy, we investigate how the concepts of moral hazard and limited liability have evolved and diffused over time. We highlight two parallel but unconnected paths of construction, diffusion, moral contestation, and eventual institutionalization. We bring to the fore clear elective affinities between both concepts and their respective evolution. Going one step further, we suggest that both concepts have come to be connected through time. In the context of contemporary capitalism, limited liability has to be understood, we argue, as a powerful structural source of moral hazard. In conclusion, we propose that this structural link between limited liability and moral hazard is an important explanatory factor of the systemic instability of contemporary capitalism and, as a consequence, of a pattern of recurrent crises that are regularly disrupting our economies and societies.
PY  - 2013
T1  - Limited liability and its moral hazard implicationsthe systemic inscription of instability in contemporary capitalism
TI  - Limited liability and its moral hazard implicationsthe systemic inscription of instability in contemporary capitalism
UR  - https://repository.graduateinstitute.ch/record/298024/files/Theory-and-Society-Djelic-2013.pdf
Y1  - 2013
ER  -