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Open Access. Powered by Scholars. Published by Universities.®

Banking and Finance Law

Columbia Law School

2012

SSRN

Articles 1 - 2 of 2

Full-Text Articles in Law

On The Theoretical Foundations For Regulating Financial Markets, Katharina Pistor Jan 2012

On The Theoretical Foundations For Regulating Financial Markets, Katharina Pistor

Faculty Scholarship

How we think about financial markets determines how we regulate them. Since the 1970s modern finance theory has shaped how we think about and regulate financial markets. It is based on the notion that markets are or can be made (more) efficient. Financial markets have been deregulated when they were thought to achieve efficient outcomes on their own; and regulation was designed to lend crutches to them when it appeared that they needed support. While modern finance theory has suffered some setbacks in the aftermath of the global crisis, defenders hold that improving market efficiency should still be the overriding …


Corporate Form And Social Entrepreneurship: A Status Report From California (And Beyond), Eric L. Talley Jan 2012

Corporate Form And Social Entrepreneurship: A Status Report From California (And Beyond), Eric L. Talley

Faculty Scholarship

In January 2012, amendments to California’s corporate code permitted a new type of corporate form designed around for-profit entities also wishing to commit to serving a broader “social purpose” (or purposes). Although not the first state to embrace such reforms, California’s experiment is unique, in that it allowed companies to opt for one of two different social benefit entity forms: the “Benefit Corporation” (BC) and the “Flexible Purpose Corporation” (FPC). This essay summarizes the reforms and presents basic descriptive data about the rate at which business organizations have embraced them. Thus far, both forms have had relatively modest take-up rates; …