A dual-class capital structure creates a gap (“wedge”) between voting rights and cash flow rights. However, the intense policy debate over the desirability of this capital structure does not consider the size of the wedge. The results of our analysis indicate that a larger wedge is...

A dual-class firm structure, in which one class of shares confers more votes per share than the other, creates a gap between voting rights and cash flow rights. In this paper, we examine the quality of the financial reports of dual- versus single-class firms publicly traded in the U.S. over the...

When Google went public with a dual-class capital structure in which shares owned by the founders confer greater voting rights than shares issued to public investors, its cofounders, Larry Page and Sergey Brin, promised to provide investors with high-quality information about the company. Using...

The two most important aspects of securities regulation, disclosure obligations and insider trading prohibitions, are both premised on the requirement that issuers have to share material information with the public or otherwise guarantee that insiders will abstain from trading on the basis of...

In this chapter we focus on disclosure—the foundation of securities regulation—of uncertain future events. We note two major differences in the United States and European disclosure regimes: the definition of materiality of information about unfolding events and whether disclosure of...

The public debate on mandating gender representation on boards of directors in the United States is close to a boiling point. California introduced a mandatory quota in 2018 and the Nasdaq Stock Market followed suit with new diversity rules in 2021 for all corporations listed on the exchange....

What makes the corporate laws of some jurisdictions more attractive for entrepreneurs and investors than others in the global arena? Delaware’s well-known corporate law and its highly regarded specialized Court of Chancery attract entrepreneurs who choose the small state as their locus of...

תקציר בעברית: משבר הקורונה ערער את מדינת ישראל בשני מישורים: בריאות הציבור ובריאות המשק. הטיפול של הממשלה בכל אחד מהמישורים היה שונה. חקיקת החירום במדינת ישראל...