Directors' and Officers' (D&O) legal liability insurance is a common component of CEO compensation packages. We expect managers are more willing to engage in opportunistic behaviors when their personal assets are protected from litigation risk. Therefore, information about D&O policy details is...

Prior auditing research has found that negotiation plays an important role in audit outcomes. General purpose negotiating literature suggests that bargaining styles are an important factor in business negotiations and that bargaining style mismatches between negotiating counterparties can...

Modern practice of international business requires companies to structure their corporate form into one which would be advantageous and safe for the management, growth and sustainability of business. However, when corporate structuring is used to avoid obligations of the company, the latter may...

This empirical paper investigates the path to the resolution of financial distress for a sample of small and medium French firms in default, in particular on the decision between bankruptcy and informal (out-of-court) negotiations. The procedure is depicted as a sequential game in which...

The paper studies the External Commercial Borrowing policy being followed by the Government of India in order to let the Indian entities access the foreign funds. The law governing foreign exchange is Foreign Exchange Management Act, 1999 but no express mention of the ECB instruments is there,...

Credit rating agencies (CRAs) are not subject to broad, negligence-based liability vis-à-vis third parties such as investors. As a consequence, incentives to take an optimistic, rather than a pessimistic-conservative approach in rating firms or financial products are strong. The EU-Commission...

In January 2012, amendments to California's corporate code permitted a new type of corporate form designed around for-profit entities also wishing to commit to serving a broader “social purpose” (or purposes). Although not the first state to embrace such reforms, California's experiment is...

We propose an alternative to the LIBOR based on three pillars. (1) Banks that participate in the rate setting process would have to submit bid and ask quotes for interbank lending and commit that they would conduct transactions within that range. If they traded outside of those ranges they would...

Corporate law determines the ways and means by which shareholder activists can pursue their strategies. A recent amendment to Swiss corporation law, if enacted, will not only complement Swiss corporate law with new, more restrictive regulation regarding management compensation, but also with...