1. Corporate governance : theory and evidence -- 2. Private benefits of control -- 3. The law and economics of control powers : a theoretical framework -- 4. Legal distribution of corporate powers -- 5. How to cope with self-dealing -- 6. Regulation of related-party transactions : a comparative...

This chapter discusses the law and finance scholarship, from its beginning to its developments into legal research and policymaking. The key issue of the importance of law for finance is illustrated along with the controversy on the law matters proposition. The focus of the chapter, however, is...

This paper analyzes the last financial crisis in the perspective of financial innovation focussing on the dynamics of systemic externalities in banking. After discussing the peculiar nature of banking and its external effects to society, it shows that one major determinant of the financial...

In this chapter, written for the book 'Law and Method. Interdisciplinary Research info Law', we describe the methodology of Law and Economics. We start by discussing the mainstream economic approach to law, including the topics of rationality, the use of (sometimes unrealistic) assumptions, the...

This essay discusses the economic case for regulating shadow banking. Focusing on systemic risk, shadow banking is defined as leveraging on collateral to support liquidity promises. Regulating shadow banking is efficient because of the negative externality stemming from systemic risk. However,...