Let's remember that Adam Smith was against the idea of the joint stock company, a company where the shareholders and managers are different people. He thought

Let's remember that Adam Smith was against the idea of the joint stock company, a company where the shareholders and managers are different people. He thought that smaller, owner operated businesses would outcompete joint stock companies, primarily because the incentives between owners and managers were aligned. Managers managing other people's money will make worse decisions over the long term than managers managing their own money. That was his theory back in 1776, things didn't turn out that way obviously.