Law and Corporate Finance (Elgar Financial Law series)

‘In this impressive and ambitious book, the authors explore the role of the law in advancing the economic wellbeing of a society. Three tiers of legal regulation of business enterprises and of equity markets are examined: basic foundational law of contracts, property and tort; corporate law; and securities law. The classical economic case for government intervention on the grounds that it can enhance trust, reduce transaction costs and contribute to valuable network externalities is clearly and cogently outlined. There is also a thoughtful account of behavioural analysis of law and corporate finance. New empirical evidence is presented alongside a useful review of studies conducted by other scholars. Complementing the economic, behavioural and empirical analyses, the book also provides a concise history of the development of the law governing corporate finance. Having examined corporate finance law from these different standpoints, in the final chapter the authors draw upon their deep understanding of the subject to provide a new perspective on current controversies. A great virtue of this book is that it covers a great deal of material in a concise, lucid and stimulating manner. The fresh and rigorous analysis also stands out. There is much here that will be of value to students and scholars.’ — Eilis Ferran, University of Cambridge, UK