Law of Business Associations
I am interested in the theory and history of corporations, and in particular, business corporations.
Past research incldues a three-part research project of the history of the purpose and function of business corporations over different periods of ‘development’. The three phases correspond roughly to three eras of economic development of the Canadian and Anglo-American economies that co-incide with the history of the joint-stock corporation: Industrial capitalism (roughly, 1800-1900), New Deal capitalism (roughly 1900-1970) and Globalization (1970 to present).
The second project is empirical: it is an inquiry into patterns of capital formation of Canadian corporations. One of the central theses of describing something as a capitalist system is to assert that capital is accumulated. My questions are, how is capital accumulated in corporations, and in particular joint stock corporations, what are the sources of capital for corporations, what is the legal framework for understanding these activities, what are the role of capital markets in this accumulation process, and the obvious question how do they spend it. Impossibly large undertakings, but some research is also impossibly interesting.
Other work in this field suggests that, for example, 2/3 to 3/4 of all corporate capital is obtained from retained earnings (Berle, 1959; Henwood, 1997; Brenner, 2004). The valorized stock markets may provide almost none of the capital required for corporations to function, and capital markets in general may not be that important to the on-going functioning of corporations. Such an empirical “fact” would have significant implications for the legal and economic characterization of corporations and their capital markets.
A third research node I am developing is the role of corporate forms, and in particular joint-stock corporations, in the history and theory of economic development. This research node is involves a focus on the role of the corporation in the law-and-development literature, and in colonial and post-colonial contexts. I have only just begun reading into this area, with some basic background provided by H.-J. Chang, Galanter and Trukeck, and the modern economists of development, such as Stiglitz.
Some Related Blog Entries
Themes relevant to the study of corporations-in-society: link.
Hollowing out of corporate Canada and pension investment: link.
The role of debt: link and link.
Mergers in Canada: link.
Algoma and hostile take-overs: link.
Executive compensation: link.
Taxation of corporations: link.
Valuation issues in firms: link.
Resources
I hope to complete a significant respository of materials relating to this research on this page. For now, I have a set of links for conducting different types of corporate research. Many of these are replicated under “Comprehensive Links” found on the main page.
HERE is a paper on the early history of the joint-stock corporation I wrote.
Public corporate filings with the Ontario Securities Commission, HERE.
[TO BE CONTINUED]