The Archives

The collection of all scholarly commentary on law, economics, and more

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The UK deregulates business structures for law firms

The Law Blog notes that the UK’s Legal Services Act goes into effect today.  When all the regulatory structures are set up, lawyers will be able to practice in “Alternative Business Structures” such as publicly traded law firms and supermarkets. According to The Lawyer, the law firm Everyman Legal says it will be “first in ... The UK deregulates business structures for law firms

The cash hoarding problem and some solutions

As I discussed last May, corporations are hoarding cash.  According to today’s WSJ, they’re still hoarding cash. Mira Ganor writes, in Agency Costs in the Era of Economic Crisis, that it could be about CEO compensation. Here’s the abstract: This Article reports results of an empirical study that suggests that the current economic crisis has ... The cash hoarding problem and some solutions

Illinois Corporate Colloquium: Choi on SEC backdating investigations

Yesterday at the Illinois Corporate Colloquium Steve Choi presented his paper (with Pritchard and Weichman), Scandal Enforcement at the SEC: Salience and the Arc of the Option Backdating Investigations.  Here’s the abstract: We study the impact of scandal-driven media scrutiny on the SEC’s allocation of enforcement resources. We focus on the SEC’s investigations of option ... Illinois Corporate Colloquium: Choi on SEC backdating investigations

Debating the business judgment rule

Alison Frankel gripes about a NJ judge’s ruling throwing out a shareholders’ derivative suit seeking to hold the J & J board accountable for problems concerning the company’s Rispardal drug. Frankel thinks the bad faith standard the court applied is not high enough. Ted Frank responds that the fact that the company had settled criminal ... Debating the business judgment rule

The uncorporation and energy infrastructure

My paper, Energy Infrastructure Investment and the Rise of the Uncorporation has been published in the current issue of the Journal of Applied Corporate Finance.  It includes a useful summary of my views of uncorporations applied to larger firms.  As of now it’s behind a pay wall.  Here’s the abstract: While most large U.S. businesses have long ... The uncorporation and energy infrastructure

Ideas for growth

NASDAQ’s Bob Greifeld writes in the WSJ: According to the Small Business Association, small businesses accounted for 64% of the 15 million net new jobs created from 1993 through 2008. In 2010, only 51% of jobs in the U.S. were created by small businesses. In the 1990s, initial public offerings by smaller companies (those raising ... Ideas for growth

ACS Blog Debate on Google: Retrograde Antitrust Analysis is No Fit for Google

I am participating in an online “debate” at the American Constitution Society with Professor Ben Edelman.  The debate consists of an opening statement and concluding responses to be posted later in the week.  Professor Edelman’s opening statement is here.  I am cross-posting my opening statement here at TOTM, and will cross-post my closing statement later ... ACS Blog Debate on Google: Retrograde Antitrust Analysis is No Fit for Google

Litigation funding grows

Looking for something in the market that’s growing instead of shrinking?  Try litigation. The WSJ surveys the current landscape of litigation funding, discussing three new U.S. entrants:  BlackRobe Capital Partners LLC, with John P.”Sean” Coffey, formerly of Bernstein Litowitz and 2010 Democratic nominee for NY AG; Fulbrook Management LLC, and Bentham Capital LLC. The article ... Litigation funding grows

Dear Michael Pollan: When It Comes to GM Food, the Problem is Regulation, Not Its Absence.

Before concluding that “there ought to be a law” to remedy an unhappy situation, one should ask whether it’s really a law that’s causing the problem in the first place.  I was reminded of that principle this afternoon when I read some remarks by Michael Pollan, doyen of the “slow food” movement, in today’s New ... Dear Michael Pollan: When It Comes to GM Food, the Problem is Regulation, Not Its Absence.

Amazon and Internet Commerce

Stewart Baker at the Volokh Conspiracy has a very interesting post on the new Amazon browser.  He thinks it might revolutionize doing business on the Web, with a tremendous increase in security.  This increase in security will entail a loss in privacy, so let’s hope the privacy guys don’t stop it.

What if the NCAA adopted Dodd-Frank?

Larcker & Tayan speculate, for example (footnotes omitted): Researchers have long noted that the compensation of college football coaches has risen faster than the compensation of other university employees. According to one study, the compensation awarded to head coaches rose 500 percent between 1986 and 2007. By comparison, the compensation of university presidents rose 100 percent ... What if the NCAA adopted Dodd-Frank?

Lawyers and soybeans

Nice article in Slate on technology’s effect on law practice featuring computational law guru Dan Katz. Some wag contributed this quote: In Illinois, where I live, you see vast stretches of unoccupied land—because you no longer need people to farm the corn and soybeans that we grow around here. When I look at soybean fields ... Lawyers and soybeans