Tag Archives: law

Non-Financial Liabilities and Effective Corporate Restructuring 

By | December 14, 2023

The system for managing corporate insolvency varies in fundamental ways between countries, with important effects on economic outcomes. Chapter 11 of the U.S. Bankruptcy Code forms the legal basis of the successful American regime, which can handle distress in a formal process without liquidating assets, closing businesses, and with limited job losses. Many countries aim… Read More »

The Law of Creditors, Debtors, and Redeemers

By | July 24, 2023

Even before law school, I became fascinated by what is sometimes called the “law of creditors and debtors.” This cat-and-mouse game between creditors and the people who owe them money was intellectually stimulating—and, I realized, terribly important. Even though the first year of law school focuses on liability, debt collection becomes all-important when judgment debtors… Read More »

Restructuring of US Law–Governed Debts in Jurisdictions Applying the Rule in Gibbs 

By | July 14, 2023

With globalized finance and trade, it has become common for multinational corporations to tap US debt capital market for finance. Despite US law governing the debt, the issuer’s place of incorporation would typically remain in other jurisdictions, such as some offshore “letterbox” jurisdictions (the Cayman Islands, BVI, Bermuda, etc.). The cross-border nature of this structure… Read More »

Variable Leases under ASC 842: First Evidence on Properties and Consequences 

By | December 13, 2022

The new lease accounting standard ASU 2016-02, Lease (Topic 842), codified as ASC 842, requires firms to recognize both finance and operating leases on their balance sheets. However, the Financial Accounting Standards Board (FASB) made an exception for leases with variable payments, which can still be kept off-balance-sheet, affecting a sizable portion of total lease… Read More »

A New Perspective on Market Actor Behavior, Motivations and Beliefs

By | August 17, 2021

In my article Tribes and Temperaments: Two Underappreciated Determinants of Market Actor Behavior, Motivations and Beliefs, prepared for a volume on Hidden Fallacies in Corporate Law and Financial Regulation, I make two arguments, one narrow and one very broad. The narrow argument is that law and economics does not take tribes or temperaments, as I define them,… Read More »

Corporate Governance at Play: Between Law and Its Perception

By | June 23, 2021

When firms go through an Initial Public Offering (IPO), their corporate governance changes by becoming more complex to reflect the requirements of a public firm. At the same time, there are many mechanisms at play due to the presence of different categories of owners: insiders vs. outsiders, founders vs. venture capital investors, etc. Therefore, the… Read More »