Ernst Freund as Precursor of the Rational Study of Corporate Law

Gindis, David, Ernst Freund as Precursor of the Rational Study of Corporate Law (October 27, 2017). Journal of Institutional Economics, Forthcoming. Available at SSRN: https://ssrn.com/abstract=2905547, doi: https://dx.doi.org/10.2139/ssrn.2905547The rise of large business corporations in the late 19th century compelled many American observers to admit that the nature of the corporation had yet to be understood. Published in this context, Ernst Freund's little-known The Legal Nature of Corporations (1897) was an original attempt to come to terms with a new legal and economic reality. But it can also be described, to paraphrase Oliver Wendell Holmes, as the earliest example of the rational study of corporate law. The paper shows that Freund had the intuitions of an institutional economist, and engaged in what today would be called comparative institutional analysis. Remarkably, his argument that the corporate form secures property against insider defection and against outsiders anticipated recent work on entity shielding and capital lock-in, and can be read as an early contribution to what today would be called the theory of the firm.Peer reviewe

Social identification in sports teams: the role of personal, social and collective identity motives

Based on motivated identity construction theory (MICT; Vignoles, 2011), we offer an integrative approach examining the combined roles of six identity motives (self-esteem, distinctiveness, belonging, meaning, continuity, and efficacy) instantiated at three different motivational levels (personal, social, and collective identity) as predictors of group identification. These identity processes were investigated among 369 members of 45 sports teams from England and Italy in a longitudinal study over 6 months with four time points. Multilevel change modeling and cross-lagged analyses showed that satisfaction of four personal identity motives (individuals’ personal feelings of self-esteem, distinctiveness, meaning, and efficacy derived from team membership), three social identity motives (individuals’ feelings that the team identity carries a sense of belonging, meaning, and continuity), and one collective identity motive (a shared belief in group distinctiveness) significantly predicted group identification. Motivational processes underlying group identification are complex, multilayered, and not reducible to personal needs

EXECUTIVE PAY AND PERFORMANCE IN PORTUGUESE LISTED COMPANIES

This essay analyses the relationship between corporate governance practices and Chief Executive Officer (CEO) wages from a sample of Portuguese listed companies over the period from 2002-2011. The relationship between CEO total compensation and shareholders return, firm characteristics, CEO characteristics, board of directors and shareholders characteristics is analysed. It is found that firm specific factors accounts for the majority of the variance in total CEO pay, while firm performance accounts for less than 5%. It is also found that the CEO characteristics, board of directors’ structures, and shareholders features are related with the CEO pay. The policy implications of these results are then derived