Finance's view of Human Nature Finance has only two beliefs about human beings. The second, which is only sometimes true, is that people are risk averse. This implies the only way to get a person to take a greater risk is to offer them a greater reward.
Many people argue that the dominance of corporation can be traced to efficiency of contracting.
The residual claimant is normally the owner of common stock. Some assumptions about corporations. Every stakeholder is greedy and is attempting to maximize their own wealth. Thus each stakeholder is playing a game to maximize their own wealth, subject to every required stakeholder agreeing to play the game. The first is straightforward.