Economic Analysis of Corporate Law

David Gindis, Martin Petrin

Research output: Chapter in Book/Report/Conference proceedingEntry for encyclopedia/dictionary

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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 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. This article outlines the foundations of the economic analysis of corporate law, contrasts the classic approach with more recent functional scholarship, and briefly discusses the law and economics of three specific issues: limited liability, managerial liability, and takeovers.
Original languageEnglish
Title of host publicationEncyclopedia of Law and Economics
EditorsAlain Marciano, Giovanni Battista Ramello
PublisherSpringer Nature
ISBN (Electronic)9781461478836
Publication statusPublished - 13 Aug 2020


  • law and economics
  • corporate law
  • theory of the firm
  • nexus of contracts
  • functional approaches
  • legal personality
  • asset partitioning
  • limited liability
  • board of directors


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