Author Archives: Harvard Law School Forum on Corporate Governance and Financial Regulation

Maintaining High-Quality, Reliable Financial Reporting

It is a pleasure to be here to speak to you about our shared and weighty responsibility to maintain high-quality, reliable financial reporting. This audience—preparers, auditors, audit committee members, and their advisors—is a very important one for the SEC. Investors, issuers, and the markets all depend on the work you do and the judgments you […]

Click here to read the complete post
Posted in Accounting & Disclosure, Boards of Directors, Practitioner Publications, Regulators Materials, Securities Litigation & Enforcement, Securities Regulation, Speeches & Testimony | Tagged , , , , , , , , , , , , , , , , , | Comments Off on Maintaining High-Quality, Reliable Financial Reporting

Putting RBC Capital In Context

In a recent decision, the Delaware Supreme Court upheld Chancery Court decisions requiring RBC Capital—a unit of the Royal Bank of Canada—to pay $76 million to Rural/Metro shareholders based on RBC Capital’s advisory work for Rural/Metro in its 2011 sale to Warburg Pincus. RBC Capital sought a buy-side financing role for Warburg Pincus, a private […]

Click here to read the complete post
Posted in Academic Research, Accounting & Disclosure, Banking & Financial Institutions, Boards of Directors, Corporate Elections & Voting, Court Cases, HLS Research, Mergers & Acquisitions, Private Equity, Securities Regulation | Tagged , , , , , , , , , , , , , , , , | Comments Off on Putting RBC Capital In Context

The Soviet Constitution Problem in Comparative Corporate Law

Leo E. Strine, Jr., Chief Justice of the Delaware Supreme Court, the Austin Wakeman Scott Lecturer on Law and a Senior Fellow of the Harvard Law School Program on Corporate Governance, recently issued an essay that is forthcoming in the Southern California Law Review. The essay, titled The Soviet Constitution Problem in Comparative Corporate Law: Testing the […]

Click here to read the complete post
Posted in Academic Research, Boards of Directors, Comparative Corporate Governance & Regulation, Corporate Elections & Voting, HLS Research, International Corporate Governance & Regulation, Mergers & Acquisitions | Tagged , , , , , , , , , , , , | 1 Comment

Private Control Premium and Option Exercises

In our paper, Out-of-the-Money CEOs: Private Control Premium and Option Exercises, forthcoming in the Review of Financial Studies, we examine the effects of proxy contests on CEOs’ option exercise policies. When faced with a challenge to insider control, we find that CEOs value company shares significantly more than the market due to the potentially decisive […]

Click here to read the complete post
Posted in Academic Research, Boards of Directors, Comparative Corporate Governance & Regulation, Corporate Elections & Voting, Empirical Research | Tagged , , , , , , , , , , , | Comments Off on Private Control Premium and Option Exercises

Insurers: Retirement Plans Look Less Golden

Earlier this year, the Department of Labor (“DOL”) released a proposed regulatory package impacting the way investment advisors and brokers are compensated. [1] Under the proposal, recommendations to an employee retirement benefit plan or an individual retirement account (“IRA”) investor will be considered “fiduciary” investment advice, thus requiring the advice to be in the “best […]

Click here to read the complete post
Posted in Accounting & Disclosure, Legislative & Regulatory Developments, Practitioner Publications, Securities Regulation | Tagged , , , , , , , , , , , | Comments Off on Insurers: Retirement Plans Look Less Golden

Scope of Federal Statutory Whistleblower Provisions

The Sarbanes-Oxley Act (SOX) and the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank) contain provisions protecting from retaliation individuals who provide information regarding a violation of U.S. securities laws. Various ambiguities in these statutory provisions have been adjudicated, most recently by the Northern District of California, which grappled with a new issue: whether […]

Click here to read the complete post
Posted in Accounting & Disclosure, Boards of Directors, Court Cases, Practitioner Publications, Securities Litigation & Enforcement, Securities Regulation | Tagged , , , , , , , , , , , , , , | Comments Off on Scope of Federal Statutory Whistleblower Provisions

Comment Letter of 18 Law Professors on the Trust Indenture Act

We are legal scholars of corporate finance. We write because we are concerned by a proposed omnibus appropriations rider that would amend the Trust Indenture Act of 1939 without any legislative hearings or opportunity for public comment on the proposed amendment. As you may know, the Trust Indenture Act is one of the pillars of American securities regulation. Congress […]

Click here to read the complete post
Posted in Bankruptcy & Financial Distress, Legislative & Regulatory Developments, Securities Regulation | Tagged , , , , , , , , , , , , | Comments Off on Comment Letter of 18 Law Professors on the Trust Indenture Act

The Long-term Effects of Hedge Fund Activism: A Reply to Cremers, Giambona, Sepe, and Wang

This post replies to a study by Cremers, Giambona, Sepe, and Wang (“the CGSW Study”), Hedge Find Activism and Long-Term Firm Value. The CGSW study, which has recently been publicly released on SSRN and simultaneously announced in a Wachtell Lipton memorandum, aims at contesting existing evidence on the long-term effects of hedge fund activism. As […]

Click here to read the complete post
Posted in Academic Research, Corporate Elections & Voting, Empirical Research, HLS Research | Tagged , , , , , , , , , , , | Comments Off on The Long-term Effects of Hedge Fund Activism: A Reply to Cremers, Giambona, Sepe, and Wang

Some Thoughts for Boards of Directors in 2016

Over the last two decades, the corporate governance landscape has become increasingly dominated by the view that maximizing the power and influence of shareholders will lead to stronger and better-governed companies. The widespread dismantling of staggered boards and change-of-control defenses, the promulgation of say-on-pay and other governance mandates, and the proliferation of best practices are […]

Click here to read the complete post
Posted in Accounting & Disclosure, Boards of Directors, Corporate Elections & Voting, Executive Compensation, Institutional Investors, Practitioner Publications | Tagged , , , , , , , , , , , , , , | 2 Comments

Individual Indemnity Protections After the “Yates Memo”

On November 16, 2015, Deputy Attorney General Sally Quillian Yates gave a speech regarding the implementation of the Department of Justice’s recent policy initiatives to facilitate the prosecution of individuals in corporate cases outlined in the “Yates Memo,” issued on September 9, 2015. These policy initiatives have now been incorporated in the U.S. Attorneys’ Manual. […]

Click here to read the complete post
Posted in Accounting & Disclosure, Legislative & Regulatory Developments, Practitioner Publications, Securities Litigation & Enforcement | Tagged , , , , , , , , , , , | Comments Off on Individual Indemnity Protections After the “Yates Memo”