Download This PaperShare Price Changes and the Arrival of Limited Liability in California
18 Pages Posted: 2 Nov 2001
Date Written: 2001
Abstract
We examine the change in share prices of firms incorporated in California at the time that California moved from pro-rata unlimited liability to limited liability, 1928 ? 1931. We find no evidence that the change had any detectible affect on share prices. However, due to small sample size our tests may be weak. Moreover, peculiarities of the California law, and the time the change was made, make it difficult to generalize from this one episode to the contemporary world.
Suggested Citation: Suggested Citation
Mark Ira Weinstein (Contact Author)
University of Southern California - Marshall School of Business - Finance and Business Economics Department ( email )
Marshall School of Business
Los Angeles, CA 90089
United States
213-740-6499 (Phone)
213-740-6650 (Fax)
University of Southern California - Gould School of Law
699 Exposition Boulevard
Los Angeles, CA 90089
United States
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