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

Florida SBA 2013 Corporate Governance Annual Summary

The Florida State Board of Administration (the “SBA”) takes steps on behalf of its participants, beneficiaries, retirees, and other clients to strengthen shareowner rights and promote leading corporate governance practices among its equity investments in both U.S. and international capital markets. The SBA adopts and reports clearly stated, understandable, and consistent policies to guide its […]

Click here to read the complete post
Posted in Boards of Directors, Corporate Elections & Voting, Corporate Social Responsibility, Executive Compensation, Institutional Investors, Practitioner Publications | Tagged , , , , , , , , , , , | Comments Off on Florida SBA 2013 Corporate Governance Annual Summary

Poll Ranks Harvard First in Strength of Business Law Faculty

A new poll, conducted by Brian Leitter of the University of Chicago Law School, and published here, identifies the top business law faculties. Harvard Law School was ranked first, coming ahead of second-place Columbia Law School by a large margin. The poll ranks faculties in terms of their strength in the business law areas, including […]

Click here to read the complete post
Posted in Program News & Events | Tagged | Comments Off on Poll Ranks Harvard First in Strength of Business Law Faculty

Liquidity and Governance

Is greater trading liquidity good or bad for corporate governance? In the paper, Liquidity and Governance, which was recently made publicly available on SSRN, my co-authors (Kerry Back and Tao Li) and I address this question both theoretically and empirically. A liquid secondary market in shares facilitates capital formation but may be deleterious for corporate governance. […]

Click here to read the complete post
Posted in Academic Research, Empirical Research, Institutional Investors | Tagged , , , , , | Comments Off on Liquidity and Governance

Statement on the Volcker Rule and Reducing Systemic Risk

The recent financial crisis and subsequent events [1] show the dangers that can result when banks trade for their own accounts while disregarding their customers’ interests. During the financial crisis, U.S. taxpayers were forced to cover losses sustained by major financial institutions that resulted from speculative proprietary trading activities. [2] While several factors combined to […]

Click here to read the complete post
Posted in Banking & Financial Institutions, Financial Crisis, Financial Regulation, Legislative & Regulatory Developments, Practitioner Publications, Regulators Materials, Securities Regulation, Speeches & Testimony | Tagged , , , , , , , , , , , , | Comments Off on Statement on the Volcker Rule and Reducing Systemic Risk

Ready for the Volcker Rule? What to Look For

Over two years after publication of a proposed regulation, a final regulation implementing the so-called “Volcker Rule” is expected to be adopted tomorrow by the five US Federal financial regulatory agencies. [1] Two of them—the Federal Reserve and the Commodity Futures Trading Commission—are expected to adopt the regulation at public meetings. According to reports, the […]

Click here to read the complete post
Posted in Banking & Financial Institutions, Financial Regulation, International Corporate Governance & Regulation, Practitioner Publications | Tagged , , , , , , , , , , | Comments Off on Ready for the Volcker Rule? What to Look For

Towards Board Declassification at 100 S&P 500 and Fortune 500 Companies: Advancing Annual Elections in the 2014 Proxy Season

Editor’s Note: Lucian Bebchuk is the Director of the Shareholder Rights Project (SRP), Scott Hirst is the SRP’s Associate Director, and June Rhee is the SRP’s Counsel. The SRP, a clinical program operating at Harvard Law School, works on behalf of public pension funds and charitable organizations seeking to improve corporate governance at publicly traded […]

Click here to read the complete post
Posted in Boards of Directors, Corporate Elections & Voting, HLS Research, Institutional Investors | Tagged , , , , , , , , | Comments Off on Towards Board Declassification at 100 S&P 500 and Fortune 500 Companies: Advancing Annual Elections in the 2014 Proxy Season

Regulating the Timing of Disclosure

In our paper, Regulating the Timing of Disclosure: Insights from the Acceleration of 10-K Filing Deadlines, forthcoming in the Journal of Accounting and Public Policy, we examine how regulatory reforms that accelerate 10-K filing deadlines in 2003 affect the reliability of accounting information. The intended purpose of the new deadlines is to improve the efficiency […]

Click here to read the complete post
Posted in Academic Research, Accounting & Disclosure | Tagged , , , , , | Comments Off on Regulating the Timing of Disclosure

Corporate Political Spending and the Mutual Fund Vote

Mutual funds’ support for corporate political disclosure reached a new high in 2013, according to a ten-year analysis by the Center for Political Accountability. Forty large US mutual fund families voted in favor of corporate political spending disclosure an unprecedented 39% of the time, on average. CPA’s review of mutual fund votes looks at how […]

Click here to read the complete post
Posted in Accounting & Disclosure, Corporate Elections & Voting, Institutional Investors, Practitioner Publications | Tagged , , , , , , , , , | 1 Comment

The Bankruptcy-Law Safe Harbor for Derivatives: A Path-Dependence Analysis

Bankruptcy law in the United States, which serves as an important precedent for the treatment of derivatives under insolvency law worldwide, gives creditors in derivatives transactions special rights and immunities in the bankruptcy process, including virtually unlimited enforcement rights against the debtor (hereinafter, the “safe harbor”). The concern is that these special rights and immunities […]

Click here to read the complete post
Posted in Academic Research, Bankruptcy & Financial Distress, Derivatives, Securities Regulation | Tagged , , , , , , , | Comments Off on The Bankruptcy-Law Safe Harbor for Derivatives: A Path-Dependence Analysis

Delaware Court: Missed Sales Forecasts Could be “Material Adverse Effect”

In Osram Sylvania Inc. v. Townsend Ventures, LLC, the Delaware Court of Chancery (VC Parsons) declined to dismiss claims by Osram Sylvania Inc. that, in connection with OSI’s purchase of stock of Encelium Holdings, Inc. from the company’s other stockholders (the “Sellers”), Encelium’s failure to meet sales forecasts and manipulation of financial results by the […]

Click here to read the complete post
Posted in Accounting & Disclosure, Court Cases, Mergers & Acquisitions, Practitioner Publications | Tagged , , , , , , , , | Comments Off on Delaware Court: Missed Sales Forecasts Could be “Material Adverse Effect”