Corporate Law and Economics

by Prof. Ryan Bubb

This course will examine how corporate law helps to mitigate the economic challenges posed by the organization of business enterprise. After discussing the fundamental legal and economic aspects, we will discuss issues such as (1) incentive problems, (2) executive compensation, (3) shareholder voting, (4) investor activism, (5) the market for corporate control as well as (6) corporate social responsibility.

We will begin with some fundamentals: What are the core legal characteristics of the corporate form of a legal entity and what purposes do they serve? One of those legal characteristics is to provide stronger forms of “asset partitioning,” by designating a pool of business assets that are distinct from the personal assets of the firm’s owners and managers and giving the claims of the firm’s creditors priority over those assets (“entity shielding”) and in turn shielding the assets of the firm’s owners from the obligations of the firm (“limited liability”). Entity shielding in particular is sometimes referred to as an aspect of the “legal personality” of a corporation. After considering the economic functions of the asset partitioning provided by the corporate form, we will turn to a closely related legal characteristic that distinguishes the corporation from some other forms of legal organization: fully transferable ownership interests.

For further course details, please see course syllabus.

Monday, 17 July 2023: 9:30 - 12:00
Tuesday, 18 July 2023: 9:30 - 12:00
Wednesday, 19 July 2023: 9:30 - 12:00
Thursday, 20 July 2023: 9:30 - 12:00

Monday, 24 July 2023: 9:30 - 12:00
Tuesday, 25 July 2023: 9:30 - 12:00
Wednesday, 26 July 2023: 9:30 - 12:00
Thursday, 27 July 2023: 9:30 - 12:00
 

Introductory courses in both business (e.g., 10125 Principles of Business) and economics (e.g., 10130 Principles of Economics) are recommended.  The Master course “62651 Theory of the Firm” is highly complementary to this course but distinct—this course will focus on the role of organizational law in constituting and facilitating economic organizations.  No prior coursework in corporate law is necessary.

You are expected to prepare for and attend every class and participate actively.  Grading will be based on class participation (30%) and a final written, closed-book exam (70%).

This course will be counted in the following degree programs in the respective modules:

Master's Studies: Business and Economics (Start of studies before 01.08.2021)
Module: Electives

Master's Studies: Business and Economics (Studium Generalis)
Module: Specific Electives in Business and Economics

Master's Studies: Business and Economics (Specialization: Data Science and Compuational Economics)
Module: General Electives in Data Science and Computational Economics

Master's Studies: Business and Economics (Specialization: Economics)
Module: Specific Electives in Economics

Master's Studies: Business and Economics (Specialization: Finance, Controlling and Banking)
Module: Specific Electives in Finance, Controlling and Banking

Master's Studies: Business and Economics (Specialization: International Business, Trade, and the Environment)
Module: Specific Electives in International Business, Trade, and the Environment

Master's Studies: Business and Economics (Specialization: Labor Economics, Human Resources and Organization)
Module: Specific Electives in Labor Economics, Human Resources and Organization

Master's Studies: Business and Economics (Specialization: Marketing and Strategic Management)
Module: General Electives in Marketing and Strategic Management

Master's Studies: Business and Economics (Specialization: Monetary Economics and Financial Markets)
Module: General Electives in Monetary Economics and Financial Markets

Master's Studies: Business and Technology
Module: Business Field: Strategy and Organization

Master's Studies: Economics and Public Policy
Module: Field Electives in Economics and Public Policy

Master's Studies: European Global Studies
Vertiefungsmodul Global Europe: Handel und Unternehmen in der Globalisierung

Master's Studies: Finance and Money
Module: Field Electives in Finance and Money

 

Prof. Ryan Bubb

Prof. Ryan Bubb
Professor of Law
School of Law
New York University, New York City
USA