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Full-Text Articles in Securities Law
Law And The Market: The Impact Of Enforcement, John C. Coffee Jr.
Law And The Market: The Impact Of Enforcement, John C. Coffee Jr.
Faculty Scholarship
Are the U.S. capital markets losing their competitiveness? A fascinating question, but what does it mean and how can it be intelligently assessed? This Article will explore the newly popular thesis that draconian enforcement and overregulation are injuring the United States and will offer a sharply contrasting interpretation: higher enforcement intensity gives the U.S. economy a lower cost of capital and higher securities valuations. This higher intensity attracts some foreign listings, but deters others.
This Article will proceed by first mapping the marked variation in the intensity of enforcement efforts by securities regulators in selected nations and then relating these …
Do Norms Matter?: A Cross-Country Evaluation, John C. Coffee Jr.
Do Norms Matter?: A Cross-Country Evaluation, John C. Coffee Jr.
Faculty Scholarship
This Article starts with the recognition that the average private benefits of control vary significantly across countries. But why? The simplest explanation ascribes this variation to differences in law between jurisdictions: for example, the law of jurisdiction X could privilege controlling shareholders by allowing them to extract benefits from their corporation in the form of above-market salaries or non-pro-rata payments in connection with self-dealing transactions. But, this explanation cannot fit all cases. To illustrate, if the substantive law is essentially similar between two jurisdictions while the private benefits of control appear to be significantly different, then some other explanation must …