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

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Now online: Rules for Growth

A formidable group of academics has collaborated in volume that has now been posted on SSRN:  Rules for Growth: Promoting Innovation and Growth Through Legal Reform.  Here’s an excerpt from the abstract:  The United States economy is struggling to recover from its worst economic downturn since the Great Depression. After several huge doses of conventional ... Now online: Rules for Growth

Private equity and corporate jets

I’ve written about the benefits of private equity’s “uncorporate” discipline, including owner exit rights and high-powered compensation, in reducing managerial agency costs in large firms.  See my Partnership Governance of Large Firms and the longer version in Chapter 8 of my Rise of the Uncorporation.  Here’s some more evidence:  Edgerton, Agency Problems in Public Firms: ... Private equity and corporate jets

Pay gaps as big law’s death rattle

Today’s WSJ reports on more evidence of the death of big law under the headline “Pay Gap Widens at Big Law Firms as Partners Chase Star Attorneys.”: Some of the biggest law firms are paying outsize salaries to star attorneys, in some cases 10 times what they give other partners, in a strategy that is ... Pay gaps as big law’s death rattle

Gladwell on US News

Malcolm Gladwell tackles US News college and law school rankings in the 2/14 New Yorker (subscription required).  The result is the usual Gladwellian light-headedness, a lot of cleverness but best taken like most situation comedies, without a lot of reflection. Gladwell begins by making the simple and unarguable point that you can’t capture the quality ... Gladwell on US News

Judicial dissolution of NY LLCs

In my recent paper, Close Corporation Remedies and the Evolution of the Closely Held Firm, written for a symposium on the famous Massachusetts close corporation case Wilkes v. Springside Nursing, I focused on the LLC alternative to close corporations.  I observed that   by providing a clearly non-corporate structure of default rules and a variety ... Judicial dissolution of NY LLCs

Cat groomers and lawyers

What do cat groomers, tattoo artists, tree trimmers, music therapist, locksmiths, caterers, hair stylists, florists, flower arrangers, interior designers, private detectives, hearing-aid fitters, conveyor-belt operators, frozen dessert retailers, hair-salon “shampoo specialists,” glaziers, librarians, nutritionists, respiratory therapists, athletic trainers, boxing promoters, eyebrow threaders, acupuncturists, tattoo artists, massage therapists for humans and for horses, wig servicers, karate ... Cat groomers and lawyers

Baker on the FCC’s Analysis of the Comcast-NBCU Merger

Jon Baker (FCC, American University) has posted an article summarizing the FCC’s analysis of the Comcast-NBCU merger.  Here is the abstract. The FCC’s analysis of the Comcast-NBCU transaction fills a gap in the contemporary treatment of vertical mergers by providing a roadmap for courts and litigants addressing the possibility of anticompetitive exclusion. The FCC identified ... Baker on the FCC’s Analysis of the Comcast-NBCU Merger

Microsoft undermines its own case

One of my favorite stories in the ongoing saga over the regulation (and thus the future) of Internet search emerged earlier this week with claims by Google that Microsoft has been copying its answers–using Google search results to bolster the relevance of its own results for certain search terms.  The full story from Internet search ... Microsoft undermines its own case

The SEC’s accounting problems

The SEC is charged with the responsibility of making sure that companies that are raising money tell the whole truth about their finances. But the NYT reports that the SEC, which is seeking money from Congress, is having problems with disclosing its own finances:  Last November, the G.A.O. said that the commission’s books were in ... The SEC’s accounting problems

The SEC, the First Amendment and general solicitation

Attorney Joseph McLaughlin (whose firm represents Goldman) writes in today’s WSJ about the approaching confrontation between the SEC and the First Amendment over the issue of general solicitation:  Goldman Sachs stated that it wouldn’t offer Facebook shares to U.S. customers because “the level of media attention might not be consistent with the proper completion of ... The SEC, the First Amendment and general solicitation

Death of a big law?

The Recorder (HT ATL) asks (concerning W & S’s rolling takeover of Howrey): Among the unknowns: What will be left of Howrey once lawyers have made up their mind about Winston, and what will happen with Howrey’s debt if most partners who receive offers accept them and no formal merger with Winston is completed? (In ... Death of a big law?

Airgas and shareholder value

Bebchuk, Cohen and Wang have posted Staggered Boards and the Wealth of Shareholders: Evidence from a Natural Experiment.  Here’s the abstract: While staggered boards are known to be negatively correlated with firm valuation, such association might be due to staggered boards either bringing about lower firm value or merely being the product of the tendency ... Airgas and shareholder value