Do managers who are neither the owners nor controlled by persons or groups with a strong holding in the stock of a company slacken in the quest of profit and turn to the pursuit of other goals? Is their compensation tailored to motivate them to seek maximum profits.? Will competition in the markets for output or the discipline exerted by the capital market allow them to behave differently from profit-maximizing firms? These questions have been investigated repeatedly under the heading of managerialism since the seminal work of Taussig and Barker [2I] and of Berle and Means [4]. The results are somewhat inconclusive