Search engine for discovering works of Art, research articles, and books related to Art and Culture
Javascript must be enabled to continue!
Lawyers, Ignorance, and the Dominance of Delaware Corporate Law
View through CrossRef
Why does Delaware continue to dominate the market for incorporations even though recent research has shown that the quality of Delaware corporate law has declined substantially? We focus on the rational ignorance of lawyers and investors. Using the results of our survey of lawyers involved in initial public offerings (IPOs) as well as our analysis of companies involved in IPOs, we conclude that lawyers recommend Delaware because they are ignorant about other states’ law. Because Delaware is so dominant, law schools focus on Delaware corporate law, and a lawyer rationally learns the corporate law only of Delaware and her home state. Regardless of the quality of the law of other states, lawyers will not recommend it because they are unfamiliar with it. Likewise, lawyers recommend only Delaware law because they believe that investors are ignorant of other states’ law.
Title: Lawyers, Ignorance, and the Dominance of Delaware Corporate Law
Description:
Why does Delaware continue to dominate the market for incorporations even though recent research has shown that the quality of Delaware corporate law has declined substantially? We focus on the rational ignorance of lawyers and investors.
Using the results of our survey of lawyers involved in initial public offerings (IPOs) as well as our analysis of companies involved in IPOs, we conclude that lawyers recommend Delaware because they are ignorant about other states’ law.
Because Delaware is so dominant, law schools focus on Delaware corporate law, and a lawyer rationally learns the corporate law only of Delaware and her home state.
Regardless of the quality of the law of other states, lawyers will not recommend it because they are unfamiliar with it.
Likewise, lawyers recommend only Delaware law because they believe that investors are ignorant of other states’ law.
Related Results
Is Corporate Law Nonpartisan?
Is Corporate Law Nonpartisan?
Only rarely does the United States Supreme Court hear a case with fundamental implications for corporate law. In Carney v. Adams, however, the Supreme Court had the opportunity to ...
Lawyers and the Abuse of Government Power
Lawyers and the Abuse of Government Power
The legal profession needs to amend the rules of professional conduct to protect our constitutional system of government from those most likely to effectively undermine it: lawyers...
PERAN TATA KELOLA PERUSAHAAN DALAM MEMODERASI PENGARUH IMPLEMANTASI GREEN ACCOUNTING, CORPORATE SOCIAL RESPONSIBILITY DAN FIRM SIZE TERHADAP KINERJA KEUANGAN
PERAN TATA KELOLA PERUSAHAAN DALAM MEMODERASI PENGARUH IMPLEMANTASI GREEN ACCOUNTING, CORPORATE SOCIAL RESPONSIBILITY DAN FIRM SIZE TERHADAP KINERJA KEUANGAN
This study examines the role of corporate governance in moderating the influence of green accounting disclosure, corporate social responsibility (CSR), and firm size on the financi...
Corporate heritage, corporate heritage marketing, and total corporate heritage communications
Corporate heritage, corporate heritage marketing, and total corporate heritage communications
Purpose
The purpose of this paper is to advance the general understanding of the corporate heritage domain. The paper seeks to specify the requisites of corpora...
Lawyers and the Abuse of Government Power
Lawyers and the Abuse of Government Power
The legal profession needs to amend the rules of professional conduct to protect our constitutional system of government from those most likely to effectively undermine it: lawyers...
Extraterritorial Courts for Corporate Law
Extraterritorial Courts for Corporate Law
A central goal in devising a system of courts is to make judicial services easily accessible. As a consequence, justice is usually administered in a geographically decentralized fa...
The Jurisprudence of Enron: Professionalism as Interpretation
The Jurisprudence of Enron: Professionalism as Interpretation
Jurisprudence can seem like a formidably esoteric field, with conceptual arguments carried on at a high level of abstraction, seemingly remote from the concerns of practicing lawye...
From Constitutional Comparison to Life in the Biosphere
From Constitutional Comparison to Life in the Biosphere
From Constitutional Comparison to Life in the Biosphere is a monograph that argues for a fundamental reorientation of constitutional law around the realities of biospheric interdep...