The standard approach to the legal foundations of corporate governance is that corporate law promotes separation of ownership and control by protecting minority shareholders from expropriation. This paper takes a broader perspective on the economic and legal determinants of corporate governance....

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...

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...

This paper attempts to shed a new light on the economics and the law of corporate governance. It so does by taking stock of the weaknesses of the standard account of how law quot;mattersquot; for separation of ownership and control. This account fails to explain comparative corporate governance....

This book reappraises the existing framework for economic analysis of corporate law. The standard approach to the legal foundations of corporate governance is based on the 'law matters' thesis, according to which corporate law promotes separation of ownership and control by protecting minority...

This inaugural lecture discusses the role of the future in law and finance.Finance is all about the future. The success of a capitalist economy rests upon the ability of finance to sustain potentially infinite growth, based on funding today the output of tomorrow. Finance, however, needs rules....

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 argues that a mitigated strict liability regime can incentivize Credit Rating Agencies (CRAs) to produce ratings as accurate as the available forecasting technology allows. A damage cap based on objective factors is introduced in order to avoid crushing liability. Moreover, CRAs are...

The goal of this essay is to determine how – and to what extent – law and economics can be normative, namely inform policymakers about which legal rules are desirable for society. A review of the law and economics movement reveals three challenges. First, efficiency is not always sufficient...

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...