- Research Handbooks in Law and Economics series
Edited by Claire A. Hill and Brett H. McDonnell
9. Empirical studies of representative litigation1 Randall S. Thomas and Robert B. Thompson 1. INTRODUCTION Shareholder litigation has long played a prominent role in corporate governance as a check on possible management misconduct. As compared to other possible constraints – markets, private ordering via monitors and incentives, norms, and government regulation, to name a few – shareholder litigation has been used more in the United States than elsewhere. In an economy of public companies with large numbers of shareholders and few large block holders, there have been recurring concerns about the incentives of those who bring such litigation (and their lawyers) and the outcomes that result. From the Wood report in the 1940s to the Private Securities Litigation Reform Act of 1995, legislatures and courts have responded to these concerns with new regulation of such litigation. As empirical work has grown over the last several decades to assume a core position in the study of corporate law, representative shareholder litigation has been a frequent topic. This chapter seeks to explain what empirical studies have told us about representative litigation and how such studies have shaped our understanding of corporate law. 2. OVERVIEW Litigation Embedded Within a Nexus of Managerial Constraints American corporate governance is a combination of state and federal law in a mix that has changed over time (usually in the direction of a greater role for federal law). Understanding the role of litigation in corporate law therefore requires coverage of two sets of laws and the integration of the two...
You are not authenticated to view the full text of this chapter or article.
Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.
Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.
Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.