OWNERSHIP CHANGE, CAPITAL ACCESS, AND ECONOMIC-GROWTH

Walter Adams and James W. Brock's Dangerous Pursuits offers conventional wisdom regarding the alleged evils of the corporate restructuring and financial innovations of the 1980s. Adams and Brock disregard how economic regulations enacted in the 1930s and 1940s led to passive investors and managerial control that furthered conglomerate acquisitions strategies of the 1960s and 1970s. This situation was undone in the 1980s with the rise of active investors and entrepreneurs who attempted to wrest control from established managers and companies so as to focus corporations on single lines of business, increasing efficiency and performance. The employment, productivity, consumer, and budgetary impacts of mergers and acquisitions were much more positive than Adams and Brock allow.