For much of the last three decades, the dominant perspective in corporate law scholarship and policy debates about corporate governance has adopted the view that the sole purpose of the corporation is maximizing share value for corporate shareholders. But the corporate scandals of 2001 and 2002,...

In the wake of the financial crisis of 2008-2009, practitioners and theorists in law, finance, and economics are rethinking our theories about how the financial sector influences the real economy. In particular, they are reexamining the linkages among financial innovation, supply of credit and...

This paper is a comment on The New Economy Business Model and the Crisis of U.S. Capitalism by William Lazonick which can be found at: "http://ssrn.com/abstract=2209322" http://ssrn.com/abstract=2209322

To prevent financial markets from imploding again, as they did in the fall of 2008, regulators must find ways to limit the amount of “leverage” financial institutions utilize. Excessive "leverage" means financing with too much debt relative to the amount of equity a firm has. Numerous...

Now that Congress has passed the Dodd-Frank Wall Street Reform and Consumer Protection Act, regulators promulgating the rules under this new bill must tackle a major problem that the reform bill addresses only indirectly. This is the problem of excessive “leverage” – financing with too...

This article proposes several simple financial market reforms that can help regulators both identify systemically risky institutions and mitigate the systemic risk associated with derivative trading, especially trading in credit derivatives such as credit default swaps.The Federal Reserve (or...