Open this publication in new window or tab >>2026 (English)In: Synthese, ISSN 0039-7857, E-ISSN 1573-0964, Vol. 208, no 4, article id 176Article in journal (Refereed) Published
Abstract [en]
The profits collected by owners of companies are commonly taken to be a just and rightful compensation for the economic risks that they take. However, in the last two-and-a-half centuries, the risk-taking that follows with ownership has been drastically reduced as a consequence of legal and organizational changes, including incorporation, limited liability, and diversified investment. Investing money in companies is no longer per se a particularly risky activity. Therefore, the argument that profits are justified as a rightful reward for the investor’s risk-taking has lost its bite and should be laid to rest. Furthermore, limited liability should be reconsidered and possibly reformed since it encourages socially irresponsible risk-taking.
Place, publisher, year, edition, pages
Springer Nature, 2026
Keywords
Capitalism, Diversified investment, Incorporation, Limited liability, Risk-taking
National Category
Economics and Business Philosophy
Identifiers
urn:nbn:se:kth:diva-389954 (URN)10.1007/s11229-026-05817-1 (DOI)001882597800016 ()2-s2.0-105051317144 (Scopus ID)
Note
QC 20261005
2026-10-052026-10-052026-10-05Bibliographically approved