A New Understanding of the History of Limited Liability: An Invitation for Theoretical Reframing

46 Pages Posted: 23 Aug 2019

See all articles by Ron Harris

Ron Harris

Tel Aviv University - Buchmann Faculty of Law

Date Written: August 22, 2019

Abstract

In this paper, I will investigate the historical development of limited liability – widely considered the cornerstone of the business corporation. I challenge the common, linear narratives about how limited liability evolved, and argue that corporations, the stock markets, and the corporate economy enjoyed a long and prosperous history well before limited liability in its modern sense became established. This radically different historical understanding calls for the economic theory of limited liability to be revisited. It also opens up a new set of conceptual, empirical, and theoretical research questions, and points to new possibilities for viable liability regimes in the future.

Keywords: Corporations, Limited Liability, History, Institutions, Organizations, Stock Markets

JEL Classification: N11, N13, N20, N80, K22, B25, G32

Suggested Citation

Harris, Ron, A New Understanding of the History of Limited Liability: An Invitation for Theoretical Reframing (August 22, 2019). Available at SSRN: https://ssrn.com/abstract=3441083 or http://dx.doi.org/10.2139/ssrn.3441083

Ron Harris (Contact Author)

Tel Aviv University - Buchmann Faculty of Law ( email )

Ramat Aviv
Tel Aviv 69978, IL
Israel
972 3 6408798 (Phone)
972 3 6407260 (Fax)

HOME PAGE: http://www2.tau.ac.il/Person/law/researcher.asp?id=agihecicf

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