Abstract

http://ssrn.com/abstract=1364402
 
 

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Why the North Dakota Publicly Traded Corporations Act Will Fail


Stephen M. Bainbridge


University of California, Los Angeles (UCLA) - School of Law

March, 18 2009

UCLA School of Law, Law-Econ Research Paper No. 09-07

Abstract:     
In this short essay for a forthcoming symposium, I comment on the North Dakota Publicly Traded Corporations Act. North Dakota hopes that the Act will empower it to compete with Delaware in the market for corporate charters. In my view, North Dakota is doomed to failure. If state chartering competition is a race to the bottom, managers will prefer Delaware to North Dakota because the former facilitates the extraction of private rents. If state competition is a race to the top, investors will prefer the director primacy approach taken by Delaware to the shareholder primacy one adopted by North Dakota. Either way, North Dakota loses.

Number of Pages in PDF File: 7

Keywords: corporation, corporate statute, race to the bottom, race to the top, Delaware, North Dakota, Public Corporation Act

JEL Classification: K22

working papers series





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Date posted: March 19, 2009  

Suggested Citation

Bainbridge, Stephen M., Why the North Dakota Publicly Traded Corporations Act Will Fail (March, 18 2009). UCLA School of Law, Law-Econ Research Paper No. 09-07. Available at SSRN: http://ssrn.com/abstract=1364402 or http://dx.doi.org/10.2139/ssrn.1364402

Contact Information

Stephen Mark Bainbridge (Contact Author)
University of California, Los Angeles (UCLA) - School of Law ( email )
385 Charles E. Young Dr. East
Room 1242
Los Angeles, CA 90095-1476
United States
310-206-1599 (Phone)
310-825-6023 (Fax)
HOME PAGE: http://www.professorbainbridge.com
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