In Bankruptcy Hardball, Professor Jared Ellias teams up with attorney Robert Stark to expose increasingly aggressive tactics by corporate managers in bankruptcy proceedings. The article, which draws on detailed case studies, is a methodological departure from Professor Ellias’s usual empirical quantitative work. But the insights are incisive as usual. The article details maneuvers by corporate… Continue reading →
In 2005, popular disgust with several high-profile cases of bankrupt firms paying top executives large “retention” bonuses led Congress to prohibit such bonuses for firms in Chapter 11. In a forthcoming article in the Southern California Law Review, Regulating Bankruptcy Bonuses, Professor Jared Ellias suggests that firms have found ways to evade this prohibition, so… Continue reading →
When a principal hires an agent to perform a task, she puts herself at risk of sustaining losses resulting from the agent’s lack of effort. For example, consider a homeowner who hires a plumber to fix a pipe. The plumber can choose to put forth great effort toward a long-lasting fix or to put forth… Continue reading →
Globalization brings tremendous benefits to developed countries, but it also creates ethical dilemmas. For example, American firms can often reduce their production costs by purchasing inputs from foreign suppliers. Problematically, the comparative advantage of some foreign suppliers might be their ability to avoid the costs associated with protecting their workers from injuries and protecting the… Continue reading →
What drives forum-shopping? Is it that sophisticated litigants seek jurisdictions that offer judicial expertise and predictable application of the law, or is it that sophisticated litigants seek to game the system by seeking out judges more likely to be biased in their favor? In “What Drives Bankruptcy Forum Shopping? Evidence from Market Data,” Professor Jared… Continue reading →
