Clayton also claimed his two concerns about this system. One is that the honest, respectful and following rules manners of CEO are based on their belief in god. Another concern Clayton mentioned is that economist always thought manager should be responsible for maximizing the return to stakeholders by doing calculation using mathematic models and most their assumptions which they later introduced to their students are not traceable. Apart from these, Clayton also illustrated the principle agent theory in managing free capitalism. He argued that about 40% of the stock in the free market is executed by hedge fund, and 55% by mutual fund or pension fund, which means 95% of the stock is hold by people who are expected to keep these stock in less than one year.
In my opinion, I agree with Clayton’s opinion. If we always following the right rule to do things, we will naturally form morality ethics, which can be a guide to judge people’s behaviors. For capitalism, if every participant follows the right rules of free market, there would be less speculators or