Economists define residual claims as the rights to the net income generated by the firm –
i.e., the amount left over after all promised payments to fixed claim holders (e.g., employees,
debtors). Additionally, residual claimants are considered the residual risk bearers of the firm
because net cash flows are uncertain and eventually negative. The “owners” of the firm are the
residual claimants according to property rights scholars (Fama, Fama and Jensen).