The Perpetual Corporation. Journal Article uri icon



  • Courts and commentators take for granted that the ultimate objective of a business corporation is long-run profitability, not immediate profits. But a corporation is a creature of statute, so a statutory source for this rule must be found--or it is not really a rule. Yet prior literature has not identified any such legal basis, leaving a gap in corporate theory. This Article fills that gap by showing that the modern corporation is obliged to act with a long-term view because it has "perpetual existence" under the law. This Article then explains that because they must plan for a perpetual future, corporations should invest like immortal entities, namely with a long time horizon and low discount rate. This method of "immortal investing" offers a number of fundamental advantages to the corporation, and is also in the public interest, as immortal investors can be expected to highly value the future and act as stewards for natural resources and other assets. [ABSTRACT FROM AUTHOR]

publication date

  • March 1, 2012

Date in CU Experts

  • October 7, 2013 12:54 PM

Full Author List

  • Schwartz AA

author count

  • 1

Other Profiles

International Standard Serial Number (ISSN)

  • 0016-8076

Additional Document Info

start page

  • 764

end page

  • 830


  • 80


  • 3