Reexamining the Law-and-Economics Theory of Corporate Governance

摘要

The dominant law-and-economics paradigm for the aspects of corporate governance relevant to control fraud predict behavior and suggest policy recommendations that are polar opposites to the predictions and reforms advanced by criminologists. The law-and-economics predictions have proved to be erroneous, and the policies they recommend have left us exposed to the current wave of control frauds. The conventional economic wisdom about the S&L debacle has proved that hindsight can be 20:200. We cannot afford a repeat of this galloping myopia.