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Economic Analysis of Corporate Law

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Encyclopedia of Law and Economics

Synonyms

Anatomy of corporate law; Corporate law and economics; Economic structure of corporate law; Economics of corporate law; Functions of corporate law

Definition

The economic analysis of corporate law applies the concepts and tools of microeconomics to the study of the legal rules, regulations, and practices that govern the formation and operation of business corporations, most notably as regards to the rights and duties of directors, officers, shareholders, and creditors. The literature has focused mostly on publicly-traded corporations, but the analytical framework extends to the simpler cases of close corporations and limited liability companies and the more complex case of corporate groups.

Foundations

Virtually all significant, large-scale business enterprises around the world are organized as corporations. Given the existence of alternative legal forms business organizers might adopt, the dominance of the corporate form suggests that it offers them some comparative...

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Correspondence to David Gindis .

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Gindis, D., Petrin, M. (2020). Economic Analysis of Corporate Law. In: Marciano, A., Ramello, G. (eds) Encyclopedia of Law and Economics. Springer, New York, NY. https://doi.org/10.1007/978-1-4614-7883-6_767-1

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  • DOI: https://doi.org/10.1007/978-1-4614-7883-6_767-1

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  • Publisher Name: Springer, New York, NY

  • Print ISBN: 978-1-4614-7883-6

  • Online ISBN: 978-1-4614-7883-6

  • eBook Packages: Springer Reference Economics and FinanceReference Module Humanities and Social SciencesReference Module Business, Economics and Social Sciences

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