Business Law, Public Responsibility, and Ethics Commons^™

Islamic Banking And Finance: Moral Beliefs And Business Practices At Work, Karen Hunt Ahmed

Karen Hunt Ahmed

The religion of Islam has existed for 1400 years but Islamic economic theory and its financial institutions emerged as an industry only in the 1970s. Islamic financial institutions (IFIs) are designed to help Muslims conduct business internationally while simultaneously upholding traditional Islamic values related to trade finance and currency movement. The basis for their existence is the Islamic moral prohibition on charging interest—interest is a central component of capitalist banking—yet IFIs conduct billions of dollars of business annually in the world economy and the de facto Islamic banking transaction is—in most cases—virtually identical to a capitalist banking transaction. Business practices …

What Makes For Effective Labor Representation On Pension Boards?, Johanna Weststar, Anil Verma

Management and Organizational Studies Publications

This article examines the efficacy of labor representation on pension boards. Using existing literature and interviews with labor trustees, this article develops a model where a more formal approach to recruitment and selection, skill acquisition, and accountability is hypothesized to aid labor trustees in achieving effective integration and representation on pension boards. Data indicate that labor trustees are placed in a challenging environment with insufficient support from their union, other trustees, or the board. These findings have important implications for the selection, training, and integration of labor trustees and the success of a labor agenda on pension issues.

Migration, Trade, And Development, Federal Reserve Bank Of Dallas, The Tower Center For Political Studies, Southern Methodist University, Department Of Economics At Southern Methodist University, Jno E. Owens Foundation

eBooks

"Migration and trade are more prevalent today than ever before in the history of the world. The United States is the recipient of about one-third of the world’s migrants and accounted for a quarter of the world’s output and 13 percent of the world’s trade in 2005. But the global significance of the U.S. economy is slowly declining, and while the effects of migration and trade on the U.S. economy have been examined time and again, questions concerning the impact of migration and trade on development in low-income countries are of growing importance.

Simple, neoclassical economic models predict that prices …

Hedge Funds And Governance Targets, William W. Bratton

All Faculty Scholarship

Corporate governance interventions by hedge fund shareholders are triggering debates between advocates of management empowerment and advocates of aggressive monitoring by actors in the capital markets. This Article intervenes with an empirical question: What, based on the record so far, have the hedge funds actually done to their targets? Information has been collected on 130 domestic firms identified in the business press since 2002 as targets of activist hedge funds, including the funds’ demands, their tactics, and the results of their interventions for the targets’ governance and finance. The survey results show that the hedge funds have an enviable record …

Fiduciary Duties And The Analyst Scandals, Jill E. Fisch

All Faculty Scholarship

No abstract provided.

Does Analyst Independence Sell Investors Short?, Jill E. Fisch

All Faculty Scholarship

Regulators responded to the analyst scandals of the late 1990s by imposing extensive new rules on the research industry. These rules include a requirement forcing financial firms to separate investment banking operations from research. Regulators argued, with questionable empirical support, that the reforms were necessary to eliminate analyst conflicts of interest and ensure the integrity of sell-side research.

By eliminating investment banking revenues as a source for funding research, the reforms have had substantial effects. Research coverage of small issuers has been dramatically reduced—the vast majority of small capitalization firms now have no coverage at all. The market for research …

Criminalization Of Corporate Law: The Impact On Shareholders And Other Constituents, Jill E. Fisch

All Faculty Scholarship

No abstract provided.

Private Standards, Public Governance: A New Look At The Financial Accounting Standards Board, William W. Bratton

All Faculty Scholarship

The Financial Accounting Standards Board (the “FASB”) presents a puzzle: How has this private standard setter managed simultaneously (1) to remain independent, (2) to achieve institutional stability and legitimacy, and (3) to operate in a politicized context in the teeth of op-position from its own constituents? This Article looks to governance design to account for this institutional success. The FASB’s founders made a strategic choice to create a regulatory agency that sought independence rather than political responsiveness. The FASB also set out a coherent theory of accounting, the “Conceptual Framework,” to contain and direct its decisions. The Conceptual Framework contributed …

The Institutional Entrepreneur As Modern Prince: The Strategic Face Of Power In Contested Fields, David Levy, Maureen A. Scully

Management and Marketing Faculty Publication Series

This paper develops a theoretical framework that situates institutional entrepreneurship by drawing from Gramsci’s concept of hegemony to understand the contingent stabilization of organizational fields, and by employing his discussion of the Modern Prince as the collective agent who organizes and strategizes counter-hegemonic challenges. Our framework makes three contributions. First, we characterize the interlaced material, discursive, and organizational dimensions of field structure. Second, we argue that strategy must be examined more rigorously as the mode of action by which institutional entrepreneurs engage with field structures. Third, we argue that institutional entrepreneurship, in challenging the position of incumbent actors and stable …

Sex-Role Orientation, Women As Managers And Transformational Leadership Among Female Law Firm Partners And Subordinates, Nathalie Lynch-Walsh

Graduate Student Dissertations, Theses, Capstones, and Portfolios

Nearly 30% of all attorneys in the U.S. are women, but only 17% of all partners in major U.S. law firms are women. The disparity in the number of women at the top of the legal profession echoes the shortage of women at the helm of major U.S. corporations. Traditional sex-role stereotypes represent one type of "glass ceiling" barrier and stem from the different behavioral norms assigned to men (agentic) and women (communal) based on relative social status. Women exhibiting nonconforming behavior are less liked than conforming women. Conversely, women exhibiting agentic behaviors such as selfconfidence and assertiveness are seen …

Measuring Efficiency In Corporate Law: The Role Of Shareholder Primacy, Jill E. Fisch

All Faculty Scholarship

The shareholder primacy norm defines the objective of the corporation as maximization of shareholder wealth. Law and economics scholars have incorporated the shareholder primacy norm into their empirical analyses of regulatory efficiency. An increasingly influential body of scholarship uses empirical methodology to evaluate legal rules that allocate power within the corporation. By embracing the shareholder primacy norm, empirical scholars offer normative assessments about regulatory choices based on the effect of legal rules on measures of shareholder value such as stock price, net profits, and Tobin’s Q.

This Article challenges the foundations of using the shareholder primacy norm to judge corporate …

The "Bad Man" Goes To Washington: The Effect Of Political Influence On Corporate Duty, Jill E. Fisch

All Faculty Scholarship

No abstract provided.

The Equilibrium Content Of Corporate Federalism, William W. Bratton, Joseph A. Mccahery

All Faculty Scholarship

No abstract provided.

Regulatory Responses To Investor Irrationality: The Case Of The Research Analyst, Jill E. Fisch

All Faculty Scholarship

An extensive body of behavioral economics literature suggests that investors do not behave with perfect rationality. Instead, investors are subject to a variety of biases that may cause them to react inappropriately to information. The policy challenge posed by this observation is to identify the appropriate response to investor irrationality. In particular, should regulators attempt to protect investors from bad investment decisions that may be the result of irrational behavior?

This Article considers the appropriate regulatory response to investor irrationality within the concrete context of the research analyst. Many commentators have argued that analyst conflicts of interest led to biased …

Supersize Pay, Incentive Compatibility, And The Volatile Shareholder Interest, William W. Bratton

All Faculty Scholarship

No abstract provided.

Sorry, But It's The Law: The Westernization Of Islam, Gwendolyn Yvonne Alexis

Gwendolyn Yvonne Alexis

The last quartile of the 20th Century vastly changed the religio-cultural landscape of the West. Previously the stronghold of Christianity, the West has entered into a period of deep diversity as a result of the unprecedented level of migration of non-Western, non-Christian peoples to western destinations. These new immigrants, with their foreign cultures and unfamiliar religions, came westward with the full expectation that they--like the diverse array of Christian emigrants who migrated westward decades before--would fully enjoy religious liberty in nations long heralded for their commitment to democratic principles and respect for civil rights. How are these immigrants faring on …

Sorry, But It's The Law: The Westernization Of Islam, Gwendolyn Yvonne Alexis

Gwendolyn Yvonne Alexis

The last quartile of the 20th Century vastly changed the religio-cultural landscape of the West. Previously the stronghold of Christianity, the West has entered into a period of deep diversity as a result of the unprecedented level of migration of non-Western, non-Christian peoples to western destinations. These new immigrants, with their foreign cultures and unfamiliar religions, came westward with the full expectation that they--like the diverse array of Christian emigrants who migrated westward decades before--would fully enjoy religious liberty in nations long heralded for their commitment to democratic principles and respect for civil rights. How are these immigrants faring on …

The New Dividend Puzzle, William W. Bratton

All Faculty Scholarship

No abstract provided.

How Do Corporations Play Politics? The Fedex Story, Jill E. Fisch

All Faculty Scholarship

Corporate political activity has been the subject of federal regulation since 1907, and the restrictions on corporate campaign contributions and other political expenditures continue to increase. Most recently, Congress banned soft money donations in the Bipartisan Campaign Reform Act of 2002 ("BCRA"), a ban upheld by the Supreme Court in McConnell v. FEC. Significantly, although the omnibus BCRA clearly was not directed exclusively at corporations, the Supreme Court began its lengthy opinion in McConnell by referencing and endorsing the efforts of Elihu Root, more than a century ago, to prohibit corporate political contributions. Repeatedly, within the broad context of campaign …

Corporate Shaming Revisited: An Essay For Bill Klein, David A. Skeel Jr.

All Faculty Scholarship

No abstract provided.

Institutional Competition To Regulate Corporations: A Comment On Macey, Jill E. Fisch

All Faculty Scholarship

No abstract provided.

Do Institutions Matter? The Impact Of The Lead Plaintiff Provision Of The Private Securities Litigation Reform Act, Stephen Choi, Jill E. Fisch, A. C. Pritchard

All Faculty Scholarship

When Congress enacted the Private Securities Litigation Reform Act in 1995 (“PSLRA”), the Act’s “lead plaintiff” provision was the centerpiece of its efforts to increase investor control over securities fraud class actions. The lead plaintiff provision alters the balance of power between investors and class counsel by creating a presumption that the investor with the largest financial stake in the case will serve as lead plaintiff. The lead plaintiff then chooses class counsel and, at least in theory, negotiates the terms of counsel’s compensation.

Congress’s stated purpose in enacting the lead plaintiff provision was to encourage institutional investors—pension funds, mutual …

Welfare, Dialectic, And Mediation In Corporate Law, William W. Bratton

All Faculty Scholarship

No abstract provided.

Rules, Principles, And The Accounting Crisis In The United States, William W. Bratton

All Faculty Scholarship

The Sarbanes-Oxley Act and the Securities Exchange Commission move too quickly ·when they prod the Financial Accounting Standards Board, the standard setter for US GAAP, to move immediately to a principles-based system. Priorities respecting reform of corporate reporting in the US need to be ordered more carefully. Incentive problems impairing audit performance should be solved first through institutional reform insulating the audit from the negative impact of rent-seeking and solving adverse selection problems otherwise affecting audit practice. So long as auditor independence and management incentives respecting accounting treatments remain suspect. the US reporting system holds out no actor plausibly positioned …

Pari Passu And A Distressed Sovereign's Rational Choices, William W. Bratton

All Faculty Scholarship

No abstract provided.

Julia's Dilemma, Andra Gumbus, Jill Woodilla

WCBT Faculty Publications

Julia, a professional woman in her mid-thirties, has had relapsing-remitting multiple sclerosis as a part of her life for the last five years. Now she must decide whether to disclose her hidden illness at work. Julia disclosed her illness to her manager in a prior employment, when her MS was first diagnosed, and experienced a supportive response. But she was always mindful that her performance would likely be carefully scrutinized since she was in a job that required strict deadlines. Julia made a career change about a year ago, and did not tell anyone in her new organization that she …

Vultures Or Vanguards?: The Role Of Litigation In Sovereign Debt Restructuring, Jill E. Fisch, Caroline M. Gentile

All Faculty Scholarship

The market for sovereign debt differs from the market for corporate debt in several important ways including the risk of opportunistic default by sovereign debtors, the importance of political pressures, and the presence of international development organizations. Moreover, countries are subject to neither liquidation nor standardized processes of debt reorganization. Instead, negotiations between a sovereign debtor and its creditors lead to a voluntary restructuring of the sovereign's debt. One of the greatest difficulties in restructuring claims against sovereign debtors is balancing the interests of the majority of the creditors with those of minority creditors. Holdout creditors serve as a check …

Sovereign Debt Reform And The Interest Of Creditors, William W. Bratton, G. Mitu Gulati

All Faculty Scholarship

No abstract provided.

The Role Of Government In Corporate Governance, Cary Coglianese, Elizabeth K. Keating, Michael L. Michael, Thomas J. Healey

All Faculty Scholarship

Numerous corporate scandals in the past several years have fueled widespread debate over proposals for government action. The central challenge for government is how to restore corporate integrity and market confidence without overreacting and stifling the dynamism that underlies a strong economy. To examine this challenge, the Center for Business and Government's Regulatory Policy Program organized a conference in May 2004 on The Role of Government in Corporate Governance. The conference brought together government officials, business leaders, and academic researchers to discuss three fundamental public policy issues raised by recent corporate abuses. First, who should regulate corporate management - government …

The New Federal Regulation Of Corporate Governance, Jill E. Fisch

All Faculty Scholarship

No abstract provided.