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Revisiting Two Classics as the New Semester Begins

TOTM Last Friday was the first day of my Business Organizations class. We began with two articles that have profoundly influenced my thinking about the world . . .

Last Friday was the first day of my Business Organizations class. We began with two articles that have profoundly influenced my thinking about the world in general and the business world in particular. To inaugurate the new semester, I thought I’d take a moment and pay tribute to the insights in those articles (and solicit first day ideas from other business law profs!).

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Financial Regulation & Corporate Governance

Manne on Shareholder Democracy

TOTM Henry Manne is back with another article in the WSJ.  This time Manne goes toe-to-toe with the “corporate democrats.” Read the full piece here. 

Henry Manne is back with another article in the WSJ.  This time Manne goes toe-to-toe with the “corporate democrats.”

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Financial Regulation & Corporate Governance

Warren on Rationality, Choice, and Regulation in the Credit Card Market

TOTM Elizabeth Warren (Credit Slips) points to an interesting empirical study by Agarwal, Liu, Souleses, and Chomsisengphet (“ALSC”) which examines consumer credit card selection in a . . .

Elizabeth Warren (Credit Slips) points to an interesting empirical study by Agarwal, Liu, Souleses, and Chomsisengphet (“ALSC”) which examines consumer credit card selection in a natural experiment setting in which a card company offers two cards to consumers: (1) a high interest rate, no annual fee card and (2) a low rate card with an annual fee.

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Financial Regulation & Corporate Governance

Morrison at ELS Blog

TOTM Ed Morrison (Columbia) has a great series of guest blogs at the always worth reading ELS Blog on a few research questions in bankruptcy and . . .

Ed Morrison (Columbia) has a great series of guest blogs at the always worth reading ELS Blog on a few research questions in bankruptcy and torts as well as a methodological entry. I am a little bit late with the link (his guest stint ended December 8th ), but I really enjoyed the posts.

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Financial Regulation & Corporate Governance

Thoughts on Walker on Backdating

TOTM Professor Ribstein responds to David Walker’s backdating article, which Bill highlighted here at TOTM a few weeks ago. Larry’s take? Read the full piece here. 

Professor Ribstein responds to David Walker’s backdating article, which Bill highlighted here at TOTM a few weeks ago. Larry’s take?

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Financial Regulation & Corporate Governance

No, Matt, executive compensation is not all about norms

TOTM In a post titled, "Backdating: Yes, Virginia, Execs Do Want Inflated Pay," over at PrawfsBlawg, Matt Bodie weighs in on the backdating "scandal."

In a post titled, “Backdating: Yes, Virginia, Execs Do Want Inflated Pay?” over at PrawfsBlawg, Matt Bodie weighs in on the backdating “scandal”? As many of you know, the topic has been much-discussed of late here at TOTM and over at Larry Ribstein’s Ideoblog (who, it turns out, beat us to this punch), and you’re probably wondering when we’re ever going to stop. Well, we (Geoff and Josh) think Matt’s post is so misguided that it merits its own paragraph-by-paragraph rebuttal in this, TOTM’s first-ever co-authored blog post!

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Henderson on Executive Compensation in Bankruptcy

TOTM Todd Henderson’s paper finds that compensation arrangements of solvent and insolvent firms are similar to each other. The empirical strategy involves the assumption that firms . . .

Todd Henderson’s paper finds that compensation arrangements of solvent and insolvent firms are similar to each other. The empirical strategy involves the assumption that firms in bankruptcy are a useful control group for testing agency theory explanations of executive compensation because those costs are significantly lower for insolvent firms.

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Financial Regulation & Corporate Governance

Explaining Backdating (and Jenkins Channels Manne Again)

TOTM Holman Jenkins reports that a group of economists led by Milton Friedman and Harry Markowitz are getting behind the idea of putting an end to . . .

Holman Jenkins reports that a group of economists led by Milton Friedman and Harry Markowitz are getting behind the idea of putting an end to the expensing of options. It is a great column. Jenkins goes on to discuss options backdating and makes the following points, which will sound unfamiliar to TOTM readers..

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Financial Regulation & Corporate Governance

Jenkins channels Manne

TOTM Today’s WSJ has a great article by Holman Jenkins on reporting on the backdating “scandal.” Larry is, of course, on the case.  I would also . . .

Today’s WSJ has a great article by Holman Jenkins on reporting on the backdating “scandal.” Larry is, of course, on the case.  I would also — modestly — point out that much of what Jenkins says in his article today, I said in this space about four months ago, when the news was first breaking.

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Financial Regulation & Corporate Governance