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March/April 1993, 
Vol. 75, No. 2
Posted 1993-03-01

Financial Regulation and the Competitiveness of the Large U.S. Corporation

by Harold Demsetz

Are U.S. business firms capable of success in highly competitive world markets? The question is embedded in hotly debated calls for the United States to develop an explicit industrial policy; in frequently expressed concerns about our loss of market leadership in the computer chip, television, and automobile industries; and in charges of excessive executive compensation. The author discusses a connection between corporate efficiency and the regulation of capital market institutions.