If securities regulation curbs greenwashing, institutional shareholders catering to climate-conscious beneficiaries are profit-seeking, Socially Responsible (SR) investors with a mandate to ameliorate climate change. SR investors can contribute to sustainable corporate governance making...

Financial markets play a significant role in channeling funds from surplus spending units (fund givers) to deficit spending units (fund takers). Whether financial intermediation is carried out by banks or capital markets, market failures are ubiquitous and call for financial regulation. This...

EU securities regulation has established a taxonomy of environmentally sustainable activities. This article discusses, from a law and economics standpoint, the potential of this taxonomy to support a sustainable corporate governance.Corporate governance can be an efficient way to channel...

As FinTech promises to increase competition for both banks and investment firms, we consider the market failures that emerge from its existence, particularly as they relate to issues of financial stability and investor protection. This chapter discusses the wave of technology-enabled...

The COVID19 pandemic is changing the face of Europe. Member States' divergent responses to this crisis unveils lack of unity in the face of a humanitarian catastrophe. At best, this undermines the effectiveness of health protection within the EU. At worst, it risks breaking up the Union...

The revision of the Shareholders Rights Directive (“SRDII”) entered into force in 2017. The SRDII represents the landing point of a long process started in 2012 with the “Action Plan: European company law and corporate governance” drafted by the EU Commission. Already in the Action plan,...

In publicly traded companies, related party transactions (RPTs) are an obvious vehicle for shareholder expropriation. However, they may also be efficient, particularly when they are motivated by transaction cost savings. This paper aims to identify which type of RPT review is not only effective...

This paper is one chapter of the volume “Regulation and Economics” of the second edition of the Encyclopedia of Law and Economics.The authors review the economics of banking and financial markets and the regulatory response to market failure. Market failure in finance depends on problems of...

This paper looks at shareholder activism from the perspective of the revision of the EU Shareholder Rights Directive, which was approved by the European Parliament on 14 March 2017. The main findings are as follows.First, the effective engagement of institutional investors in corporate...