Innovation in Corporate Law
Columbia University School of Law
Ernst & Young
London School of Economics - Law Department; Cornell University - Law School
Mark D. West
University of Michigan Law School
Journal of Comparative Economics, Vol. 31, pp. 676-694, 2003
In most countries large business enterprises today are organized as corporations. The corporation with its key attributes of independent personality, limited liability and free tradeability of shares has played a key role in most developed market economies since the 19th century and has made major inroads in emerging markets. We suggest that the resilience of the corporate form is a function of the adaptability of the legal framework to a changing environment. We analyze a country's capacity to innovate using the rate of statutory legal change, the flexibility of corporate law, and institutional change as indicators. Our findings suggest that origin countries are more innovative than transplant countries.
Number of Pages in PDF File: 35
JEL Classification: G3, K2, N2, P5
Date posted: July 17, 2003
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