Law and Economics

İktisat ve Hukuk Disiplini Çerçevesinde Vergi Suçlarının İtirafını Teşvik Eden Düzenlemeler

by Zübeyr Yıldırım

British pubs, decoder cards, and the future of intellectual property licensing in the European Union after Murphy.

by Anastasios Kaburakis

With Lindholm, J, and Rodenberg, R.

October 4, 2011 marked a new era in global sports media rights. On this day, the Grand Chamber of the European Court... more October 4, 2011 marked a new era in global sports media rights. On this day, the Grand Chamber of the European Court of Justice (ECJ) delivered its judgment in FA Premier League et al. v. QC Leisure et al. & Murphy v. Media Protection Services Ltd (“Murphy”). Murphy decided upon the legality of a scheme whereby the holder of intellectual property rights to a sporting event licenses the right to broadcast the event on a national exclusivity basis.

Exchanges and Their Investors: A New Look at Reporting Issues, Fraud, and Other Problems by Exchange

by Douglas Cumming

Cumming, Douglas J. and Johan, Sofia A., 2011. "Exchanges and Their Investors: A New Look at Reporting Issues, Fraud, and Other Problems by Exchange." Available at SSRN: http://ssrn.com/abstract=1985319 or http://dx.doi.org/10.2139/ssrn.1985319

Statistics reporting litigated cases of fraud on an exchange-by-exchange basis are not readily available to... more Statistics reporting litigated cases of fraud on an exchange-by-exchange basis are not readily available to investors.  This paper introduces data from three countries with multiple exchanges with different listing standards, – Canada, the United Kingdom and the United States –  to show litigated cases of fraud significantly vary by country, and the different exchanges within the country.  Comparisons are also made to Brazil, China and Germany to assess out-of-sample inferences.  The data examined suggest there are significant differences in the nature of observed fraud across exchanges within the United States; by contrast, outside the United States there appears to be a comparative lack of enforcement.  The data also suggest policy implications for the ways in which fraud ought to be reported to improve investor knowledge, market transparency and market quality.

Regulatory harmonization and the development of private equity markets

by Douglas Cumming

Cumming, D.J., and S.A. Johan, 2007. “Regulatory Harmonization and the Development of Private Equity Markets” Journal of Banking and Finance, 31, 3218–3250.

This paper introduces a new dataset from 100 Dutch institutional investors’ domestic and international asset private... more This paper introduces a new dataset from 100 Dutch institutional investors’ domestic and international asset private equity allocations. The data indicate that the perceived comparative dearth of regulations of private equity funds impedes institutional investor participation in private equity funds, particularly in relation to the lack of transparency. The data further indicate that the perceived importance of regulatory harmonization of institutional investors has increased Dutch institutional investor allocations to domestic and international private equity funds, particularly via the harmonization from the International Financial Reporting Standards (regulation of reporting standards and transparency), the Financieel Toetsingkader (regulation of portfolio management standards such as of matching assets and liabilities), and Basel II (regulation of risk management and disclosure standards).

Bankruptcy Law and Entrepreneurship

by Douglas Cumming

Armour, J., and D.J.. Cumming, 2008. “Bankruptcy Law and Entrepreneurship” American Law and Economics Review 10(2): 303-350.
- Reviewed in James Surowiecki, April 7, 2008, “Going for Broke” in The New Yorker http://www.newyorker.com/talk/financial/2008/04/07/080407ta_talk_surowiecki

Entrepreneurs, catalysts for innovation in the economy, are increasingly the object of policymakers’ attention. Recent... more Entrepreneurs, catalysts for innovation in the economy, are increasingly the object of policymakers’ attention. Recent initiatives both in the UK and at EU level have sought to promote entrepreneurship by reducing the harshness of the consequences of personal bankruptcy law. Whilst there is an intuitive link between the two, relatively little attention has been paid to the question empirically, particularly in the international context. We investigate the link between bankruptcy and entrepreneurship using data on self employment over 16 years (1990-2005) and 15 countries in Europe and North America. We compile new indices reflecting how ‘forgiving’ personal bankruptcy laws are, reflecting the time to discharge. These measures vary over time and across the countries studied. We show that bankruptcy law has a statistically and economically significant effect on self employment rates when controlling for GDP growth, MSCI stock returns, and a variety of other legal and economic factors. The results have clear implications for policymakers.

Legality and Venture Capital Governance around the World

by Douglas Cumming

Cumming, D.J., D. Schmidt and U. Walz, 2010. “Legality and Venture Capital Governance around the World” Journal of Business Venturing 25, 54-72.

We analyze governance with a new dataset on investments of venture capitalists in 3848 portfolio firms in 39 countries... more We analyze governance with a new dataset on investments of venture capitalists in 3848 portfolio firms in 39 countries from North and South America, Europe and Asia spanning 1971–2003. We provide evidence that cross-country differences in legality, including legal origin and accounting standards, have a significant impact on the governance structure of investments in the VC industry: better laws facilitate faster deal screening and deal origination, a higher probability of syndication and a lower probability of potentially harmful co-investment, and facilitate investor board representation of the investor. We also show that country-specific differences exist apart from legal and economic development.

Private Equity Returns and Disclosure Around the World

by Douglas Cumming

Cumming, D.J., and U. Walz, 2010. “Private Equity Returns and Disclosure around the World” Journal of International Business Studies 41(4), 727-754.
- Reprinted as Cumming, D.J., and U. Walz, 2010. “Private Equity Returns and Disclosure around the World” Journal of Business Valuation, Vol 2., pp.1-33 (lead article)
- Winner of the Canadian Institute of Chartered Business Valuators (CICBV) Best Paper Prize ($5,000)
- PWC Global Competency Centre Research Excellence Award (€3,000)

To obtain more funds from the institutional investors, private equity fund managers may report inflated valuations of... more To obtain more funds from the institutional investors, private equity fund managers may report inflated valuations of private investee companies that are not yet sold. However, such overvaluations may result in a reputational cost when those investments are realized. Using evidence from 39 countries, we show that there are significant systematic biases in managers' reporting of fund performance. We find that these biases depend on the accounting and legal environment in a country, and on proxies for the degree of information asymmetry between institutional investors and private equity fund managers.

When is a market not a market?: 'Exemption', 'externality' and 'exception' in the case of European State Aid rules

by Will Davies

Forthcoming in Theory Culture & Society

The reach of markets and market-based forms of valuation is never unlimited in any society, which invites empirical... more The reach of markets and market-based forms of valuation is never unlimited in any society, which invites empirical and political questions regarding how limits to markets are instituted, justified and enforced. Under neoliberalism, the state performs a key role in expanding the reach of markets and associated principles and techniques of valuation, using law and governmental techniques. But this then poses a question of the relationship between the neoliberal state and the market that it endorses and enforces: is the state internal or external to the market order that it helps to construct? European Union State Aid rules provide an empirical entry point to consider such questions, providing a combination of normative, technical and sovereign principles, via which the division between state and market can be justified, tested and enacted. The paper identifies three separate though overlapping logics within State Aid documents, each of which offers the State a justification for suspending the competitive market order: exemptions, in which non-market values are upheld, externalities, in which markets are shown to be technically inefficient, and exceptions – such as the 2008 financial crisis – in which the state abandons the market to save the market.

Expertises et tribunaux de commerce. Procédures et réputation à Livourne au 17ème siècle

by Guillaume Calafat

Published in 'Hypotheses', 2010.

Expertises and commercial courts. Procedure and reputation in Livorno in the 17th century. Expertises and commercial courts. Procedure and reputation in Livorno in the 17th century.

Table of contents

by Ana Ramalho

Análise Económica da Proteção das Medidas Tecnológicas no Direito de Autor: Uma Visão Portuguesa

by Ana Ramalho

Increasing the Efficiency of the General Equal Treatment Act- an Economic Analysis of Law

by Hartmut H. Frenzel

"Increasing the Efficiency of the General Equal Treatment Act - an Economic Analysis" International Journal of Discrimination and the Law 11.3 (2011): 109-122.

This paper examines the verdict in the case of Mrs. Sule Eisele Gaffaroglu versus R+V Lebensversicherungs AG,... more This paper examines the verdict in the case of Mrs. Sule Eisele Gaffaroglu versus R+V Lebensversicherungs AG, Wiesbaden Labour Court.
The economic analysis of law focuses on the three main paragraphs of the General Equal Treatment Act (Allgemeines Gleichbehandlungsgesetz – abbreviated to AGG): § 22 - Burden of proof for the plaintiff and reversing the onus of proof to the defendant, § 15 Para. 1 - Compensation of material losses and § 15 Para. 2 – Monetary compensation for non-economic loss.
The analysis of the verdict concludes that the AGG, in the version currently in force, is not efficient. However, this paper also suggests possible ways of increasing the efficiency of the AGG.

As lições da propriedade: De Soto vai ao Cantagalo

by Rafael Baleroni

Lessons from Property: De Soto goes to Cantagalo. Article in the book "Galo Cantou! A conquista da propriedade pelos moradores dos Cantagalo." (The Rooster Sang! The conquest of property by the Cantagalo dwellers), organized by Mr. Paulo Rabelo de Castro

I discuss the advantages and incentives of land regularization in the Cantagalo hill, in Rio de Janeiro, using... more I discuss the advantages and incentives of land regularization in the Cantagalo hill, in Rio de Janeiro, using property titles (instead of other limited rights commonly used by the State government), and conclude that it should be used in other slums.

Discuto as vantagens e incentivos da regularização fundiária no morro do Cantagalo, no Rio de Janeiro, usando títulos de propriedade (ao invés de outros direitos limitados comument usados pelo governo estadual), e concluo que deveria ser usado em outras favelas.

A view of the Dutch IPO cathedral

by Peter Oh

Analisi economica e metodo giuridico: i servizi pubblici locali

by Luca R. Perfetti

The Brain Drain: Implications for Regional Economic Integration in the Expanding European Union.

by Matthew Jelavic

Jelavic, M. (2012). The brain drain: Implications for regional economic integration in the expanding European Union. In B. Chapalet, & M. Le Berre (Eds.), Producing New Knowledge on Innovation Management. Presses Universitaires de Grenoble, 99 – 111.

This paper provides a review and conceptual analysis of issues surrounding regional economic integration and the... more This paper provides a review and conceptual analysis of issues surrounding regional economic integration and the potential for inter-country brain drain within the expanding European Union (EU). As the EU expands eastward, it absorbs millions of highly skilled knowledge workers and opens opportunities for western European organisations to capitalise on this workforce. The migration of these skilled workers is a macro-exercise in eastern European knowledge management, and could have far-reaching implications at the regional, industry and organisational levels. This paper explores the context and implications of knowledge worker movement across fading borders.

A falha na articulação entre real e financeiro na economia brasileira: reflexões sobre o impacto nas firmas, competitividade e desenvolvimento tecnológico

by Elson Rodrigo Souza Santos

Co-authored Armando Dalla Costa
Preliminary and incomplete version

This work explores the relationship between the economy and financial in the Brazil. We start from the assumption that... more This work explores the relationship between the economy and financial in the Brazil. We start from the assumption that the fault is identified in the high degree of difficulty in self-financing and financing of new, small and medium firms have access to channels to obtain funds for investment. The findings suggest that the fault lies in not finding a financial structure that fits with national peculiarities and industrial policy, contributing to low competitiveness and technological development of Brazilian industry. However, throughout the 2000s, there is evidence of the construction of a new institutional arrangement through the strengthening of public credit and the cash flows, benefit from the use of financial products and own resources for financing investment projects. In parallel, indicating that large firms solved the financing problem, but the arrangement needs to be improved, be better integrated with industrial policy and reduce the financial repression of other firms.

Jakub J. Szczerbowski, “Ekonomiczna analiza prawa a metodologia prawa porównawczego. Wybrane zagadnienia,” in Człowiek pomiędzy prawem a ekonomią w procesie integracji europejskiej (Olsztyn - Bari, 2008).

by Jakub J. Szczerbowski

UPFRONT ACCESS PAYMENTS, CATEGORY MANAGEMENT AND THE NEW REGULATION OF VERTICAL RESTRAINTS IN EU COMPETITION LAW: IMPORTING THE RETAIL SIDE OF THE STORY

by Ioannis Lianos

First published as Ioannis Lianos, “New Kids on the Block: Retailer-driven Vertical Practices and the New Regulation of Vertical Restraints in EU Competition Law”, (2010) The CPI Antitrust Journal June 2010 (2).

By integrating more fully the retailer power story, the new vertical restraints guidelines and block exemption... more By integrating more fully the retailer power story, the new vertical restraints guidelines and block exemption regulation provide for a more equilibrated regime for vertical restraints in Europe. The objective of the Commission was not only to address the important concern of retailer power and its possible anticompetitive effects in a retail sector that is characterized by increasing concentration, although not necessarily increasing profitability, but also to respond to the concerns (and political pressure) over big distribution and the power of multi-brand retailers that have been expressed at the national level, with the adoption of a hard or a soft law type of approach in order to regulate the relation between suppliers and retailers. By bringing these concerns within the realm of EU competition law, the Commission offers an alternative relief valve that takes more into account the effect of these practices on consumers than the regulations adopted at the national level.

A disciplina da remuneração de administradores nos códigos de governança corporativa britânicos e brasileiros sob a ótica da teoria da representação.

by Bruno Haack-Vilar

The first part of this paper presents the agency theory, specially as it was developed by Michael Jensen and William... more The first part of this paper presents the agency theory, specially as it was developed by Michael Jensen and William Meckling based on the developments of Fischer Black, Myron Scholes and Robert Merton. The second part tries to find elements from the agency theory in the corporate governance codes of the United Kingdom and Brazil. We conclude that while the agency theory influences the UK codes very much, the Brazilian ones have moved to a perspective much closer to the stakeholder theory.