Corporations, Shareholders, and Policy

3.0 credits · Undergraduate

Uses economic analysis to study the interaction of the market, the corporation, and the law and how these interactions affect the well-being of shareholders and consumers. Examines the costs and benefits of the corporate form of organization. The legal institutions defining the corporation, such as limited liability and shareholder voting, are analyzed along with regulations governing these institutions. A particular focus is mechanisms that control the behavior of managers. Those mechanisms include hostile takeovers, insider trading, outside directors on the board, the role of large investors, and executive compensation plans. Additional topics include government ownership of corporations and nonprofit enterprises.