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

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IPO Marketing Practices During the Waiting Period

The make or break time for an IPO from the underwriter’s perspective is the waiting period (the period of time beginning when the IPO registration statement is filed with the SEC and ending when the SEC declares the registration statement effective). This is when the underwriting syndicate is bookbuilding, i.e. actively marketing the deal and ... IPO Marketing Practices During the Waiting Period

Accurately Disclosing Oil Reserves

Yesterday’s W$J reported on an effort by oil companies to change the way reserves are reported in securities filings. SEC rules, it seems, mandate that reserves be measured in a manner that understates the actual amount of available oil. For example, the rules (available here) require that only proven reserves (those for which there is ... Accurately Disclosing Oil Reserves

Directors' Duties Even in Solvent Firms

In the Ribstein & Alces paper mentioned below by Keith, Ribstein & Alces write: The problem with holding that directors have duties to the “corporation” is that the corporation is composed of contracts among claimants with varying and possibly conflicting interests in the firm’s wealth. In solvent firms this is not troubling. Serving the firm’s ... Directors' Duties Even in Solvent Firms

Paternalism and the iPod, Part II: The Behavioral Economics of Apple?

Dave Hoffman over at Concurring Opinions asks: “Is Apple Exploiting Consumer Irrationality?” Dave is worried that consumers’ continuing iPod purchases may be irrational in the face of evidence that many iPod’s fail within their one year warranty period or shortly after, and that this strategy might explain Apple’s “growing market strength.” How likely are consumer ... Paternalism and the iPod, Part II: The Behavioral Economics of Apple?

New antitrust blawg

It’s called Antitrust Review. It’s the result of a merger between the antitrust division of Law & Society Blog and (Anti-)Trust Me, both original members of our ultra-exclusive blogroll. Here’s what Hanno Kaiser, one of the blog’s founders, and a friend and former colleague of mine, says about the blog: Antitrust Review will feature news ... New antitrust blawg

Venture Backed Firms Going Public in London

This article from CFO.com reports that VCs have been having trouble taking their portfolio companies public in the U.S. largely because SOX has made it too expensive for small companies and the Wall Street research settlement has resulted in much less analyst coverage of small public companies. Larry Ribstein also talks about this here. As ... Venture Backed Firms Going Public in London

Live Blogging the Super Bowl

I will not be live blogging the Super Bowl. In my mind, live blogging an event is warranted only when (1) the event is not broadcast live, (2) the blogger can provide unique/insightful commentary, and (3) the event is of immediate interest to the blog’s audience. Me live blogging the Super Bowl definitely fails on ... Live Blogging the Super Bowl

What’s "Courageous" When It Comes to Taxing Investment Income?

Today’s New York Times accuses President Bush of getting things “exactly backwards” by exhorting Congress to demonstrate political courage by resisting the urge to raise taxes. The politically courageous move, the Times says, would be to raise taxes (i.e., to refuse to extend the 2003 cuts beyond their expiration date). In particular, the Times calls ... What’s "Courageous" When It Comes to Taxing Investment Income?

Paternalism and the iPod

I know it’s like shooting fish in a barrel to go after the tort bar and the cult of litigation masquerading as paternalism (or is it paternalism masquerading as litigation?), but this is too ridiculous to forebear. Over at Tech Law Prof Blog, Mark Giangrande reports that Apple has been hit with a lawsuit claiming ... Paternalism and the iPod

Icahn Sued by Hedge Fund

Carl Icahn has been all over the news lately. I’m beginning to think it’s to garner publicty for the launch of a new reality show called something like “The Activist.� I would watch it. Anyway, today the W$J reports (click here) that Icahn is being sued by a hedge fund in connection with proposed transactions ... Icahn Sued by Hedge Fund

Risk Allocation Provisions and Auditor Independence

I blogged previously about a W$J article on auditors including so-called liability caps in their client engagement letters (see here). My view was that it really wasn’t newsworthy because “liability limitation provisions are standard in contracts among sophisticated parties, so its not surprising that auditors include them in engagement letters.� Additionally, the provisions cited in ... Risk Allocation Provisions and Auditor Independence

The U.S., the WTO and the absence of international law

Joel Trachtman at International Economic Law & Policy blog and Julian Ku at Opinio Juris are commenting on the role of international law in shaping US behavior, in this case with respect to compliance with WTO rulings. As Joel points out, “[t]raditional realist political science considers traditional international law ‘epiphenomenal,’ meaning that the real action ... The U.S., the WTO and the absence of international law