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Record W1536904737

Corporate Law and its Efficiency: A Review of History

2010· review· en· W1536904737 on OpenAlexaff
P. M. Vasudev

Bibliographic record

VenueSSRN Electronic Journal · 2010
Typereview
Languageen
FieldBusiness, Management and Accounting
TopicCorporate Insolvency and Governance
Canadian institutionsUniversity of Ottawa
Fundersnot available
KeywordsStatuteCorporate lawCorporate governancePolitical sciencePoliticsLegitimacyLaw and economicsLegislatureLawPolitical economyEconomicsFinance
DOInot available

Abstract

fetched live from OpenAlex

Economic theory of corporations, which has been influential in the recent decades, offers efficiency as the explanation for the open structure of present corporate law. Commending the statutes for their “enabling” character, it has been argued that the law of corporations was shaped by the consideration of efficiency. This article reviews the origin and development of business corporations in the United States since the American Revolution. It explains the restrictive attitude of public policy towards corporations in the early period and the social and political concerns that animated the discourse. The far-reaching changes made to corporate law since mid-nineteenth century arose from myriad factors and influences. There was, on the one hand, the egalitarian idea that incorporation ought to be available to all as a matter of right. On the other, business and financial interests wielded significant influence on legislative policy and were able to procure amendments that suited their needs. The review of history indicates that efficiency was not the starting point of the changes that occurred in corporate law beginning from the 1880s. Considering the history of development, the article argues that corporate statutes lack substantial legitimacy, judged by current standards. In modern democratic societies the laws enacted by elected legislatures must, as a normative ideal, represent the considered statements of public policy on a given subject. Recent events, beginning from Enron at the turn of the century to the latest governance failures in the financial sector, point to significant deficiencies in the present model of corporate law. It is, therefore, timely to make a review of history for assessing the suitability of the framework of corporate law for the present times and in defining the path for the future. The present situation is quite different from 1880-1930, when significant changes occurred in American corporate law. It was the age of American ascent. Growth of industry and business and the general rise in prosperity muffled, if not subordinated, other important considerations – social and political. Indeed, economic progress has been offered as a vindication of the current state of corporate law. A hundred years later, the world is a different place. The current recession, general industrial decline in America and other developed countries and stagnant incomes for large sections of the society for the last few decades are some factors that warrant a review of the business corporation, which is, arguably, a significant economic institution. Historically the debate on corporations in the United States has been remarkably rich, animated by vibrant political and social ideas. It was not confined to the narrow economic sphere. Another goal of this article is to recall some of the older ideas that stressed the multifaceted character of business corporations – economic, political and social. The review of history will, hopefully, contribute to enriching the debate on corporations and in exploring how the corporate device can be better attuned to the needs of the present.

Fetched live from OpenAlex and de-inverted. Abstracts are not stored in this database: the inverted indexes are 8.6 GB of the frame’s 9.3 GB of text, and the host has 13 GB free.

How this classification was reachedexpand

Full frame distilled prediction

Teacher imitation

Not calibrated prevalence, not ground truth. Human validation pending. Learned from the 10,348 direct Codex labels and 10,348 direct Gemma labels. Candidate is the union of thresholded teacher heads; consensus is their intersection. These outputs are machine_predicted_unvalidated and are not human labels or direct frontier model labels.

metaresearch head score (Codex)0.002
metaresearch head score (Gemma)0.000
Version: codex-gemma-dda1882f352aValidation status: machine_predicted_unvalidated
Candidate categoriesMeta-epidemiology (narrow), Research integrity
Consensus categoriesnone
DomainCandidate signal: none · Consensus signal: none
Study designCandidate signal: Not applicable · Consensus signal: none
GenreCandidate signal: Review · Consensus signal: Review
Teacher disagreement score0.938
Threshold uncertainty score1.000

Codex and Gemma teacher scores by category

CategoryCodexGemma
Metaresearch0.0020.000
Meta-epidemiology (narrow)0.0000.000
Meta-epidemiology (broad)0.0010.000
Bibliometrics0.0000.000
Science and technology studies0.0000.000
Scholarly communication0.0000.001
Open science0.0010.000
Research integrity0.0000.003
Insufficient payload (model declined to judge)0.0000.000

Machine scores (provisional)

The two teacher heads of the student model, read on this work. A score orders the frame for review; it never asserts a category, and the validation status ships verbatim with every row.

Baseline scores from an immature model (maturity gate not passed, 7 training rounds). Scores rank; they never assert a category.

Opus teacher head0.036
GPT teacher head0.247
Teacher spread0.211 · how far apart the two teachers sit on this one work
Validation statusscore_only:v0-immature-baseline · verbatim from the scoring run: score_only means the number may rank works, and no category label ships from it

Classification

machine, unvalidated

Machine predicted; a candidate call from one teacher head, not a consensus.

Study designNot applicable
Domainnot available
GenreReview

How this classification was reached, model by model and score by score, is at the end of the page under "How this classification was reached".

Quick stats

Citations3
Published2010
Admission routes1
Has abstractyes

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