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

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More on getting rid of LLC fiduciary duties

I have frequently discussed the ongoing jurisprudential drama in Delaware on how firms can avoid fiduciary duties. The basic setup here is that Delaware allows LLCs and other unincorporated firms to completely eliminate fiduciary duties. But they have to do it carefully. Here’s my most recent discussion of the state of play on what that ... More on getting rid of LLC fiduciary duties

The unexpected expected consequences of financial reform

The LA Times expresses surprise that Goldman Sachs will come out quite well from financial reform. Who did they think was calling the shots in Congress? Consumers? Investors? How badly were accountants, the culprits in the last financial meltdown, hurt by Sarbanes-Oxley? Most notably, the LA Times is shocked Goldman is not actually going to ... The unexpected expected consequences of financial reform

Food for thought, but don’t believe the label

“People who read food labels such as the Nutrition Facts Panel, ingredient lists or serving size are more likely to have healthier diets than those who do not read labels, according to a new study appearing in the August issue of the Journal of the American Dietetic Association.”  So reads the opening line of a ... Food for thought, but don’t believe the label

The (deficit) spender of last resort

Todd posts below about the $26 billion bill before the US House today as a gift to teachers (or perhaps more accurately, teachers unions) and school bureacrats. In reality, only $10 billion of the funds is specifically slated to rehire laid off teachers and some other public employees. The other $16 billion is to fund ... The (deficit) spender of last resort

Proxy Access At Long Last, & Introducing PA Defense # 5: Whitemail

Reports indicate that the SEC is going to vote on proxy access August 25.  The vote will be 3-2 in favor of proxy access.  The SEC first considered a proxy access rule in 2003 but never voted on it.  Prof. Harvey Goldschmid, now at Columbia Law and then a Commissioner at the SEC, was the central ... Proxy Access At Long Last, & Introducing PA Defense # 5: Whitemail

Union-boss compensation

There are hundreds and hundreds of academic articles in law, finance, economics, business, and other social sciences discussing the issue of executive compensation broadly and down to the smallest detail. There are none — actually, one working paper in draft form on one issue — that I can find on the issue of how much ... Union-boss compensation

Will an m & a boom save Big Law?

John Carney thinks a recent notable move of prominent banking partners from Latham to Milbank might signal that “debt financing for takeovers is about to take off,” just as it did when the same team moved from Skadden to Latham in 2004. This would also be consistent “with corporate cash piling up to record levels.” ... Will an m & a boom save Big Law?

Paul Krugman spouting nonsense

In this morning’s New York Times, Professor Paul Krugman laments the state of America, and, as a remedy, proposes . . . surprise! . . .  more government spending. He writes: “When we save a schoolteacher’s job, that unambiguously aids employment; when we give millionaires more money instead, there’s a good chance that most of ... Paul Krugman spouting nonsense

What’s Missing from Tyler’s IO Reading List

Tyler Cowen has posted the reading list for his 2010 Industrial Organization class in the George Mason economics department.  He asks for recommendations.  Below the fold are my suggestions to supplement Section I or II of Cowen’s reading list. The first order of business is getting Coase, Klein, Crawford Alchian (1978), Alchian and Demsetz (1972) ... What’s Missing from Tyler’s IO Reading List

Market vs. regulatory incentives for whistleblowing

The Financial Times notes that New US whistleblowing incentives within the Dodd-Frank financial reform act – that could net informants multimillion dollar pay-outs – are likely to generate a surge in allegations against US-listed companies and Wall Street banks, lawyers say. * * *[F]inancial industry bodies and lawyers representing companies warned that the scale of ... Market vs. regulatory incentives for whistleblowing

Market constraints on corporate speech

In the wake of the Citizens United decision I responded to the argument that empowering corporation would distort political debate in part by noting that “[f]or-profit firms are limited in their ability to invest in politics for the simple reason that they can’t stay in business over the long run if they lose money.” As ... Market constraints on corporate speech

HP: the adventure continues

When I last discussed HP, I reflected on the spectacular failure of independent board governance associated with pretexting-gate. That, you might recall, was Patricia Dunn’s highly questionable covert-op that epitomized the general board dysfunction that can accompany independent director governance of modern corporations. Now we have news (from the NYT) that HP’s most recent CEO, ... HP: the adventure continues