University of Michigan Legal Working Paper Series
University of Michigan John M. Olin Center for Law & Economics Working Paper Series
London as Delaware?
Abstract
Regulatory competition has long driven the path of corporate law in the federal system of the United States. Now, jurisdictional competition has spread to exchange listings. New York took an early lead in that competition in the 1990s, but has now been overtaken by London. Can London prevail in the competition for stock listings in the long term? This essay explores that question through the insights offered by Delaware’s dominance in the market for corporate listings. Delaware has prevailed by offering corporate directors a predictable body of that credibly shields directors from the vagaries of political backlash in times of financial crisis. London’s performance during the recent financial crisis suggests that it – like New York – lacks the capacity to shield players in the financial system from the populist forces that seek retribution in the wake of economic reversals. In the long run, neither London nor New York is likely to enjoy a comparative advantage in the market for stock exchange listings.
Subject Area
Corporations, Securities Law
Recommended Citation
Adam C. Pritchard,
"London as Delaware?"
(May 2009).
University of Michigan Legal Working Paper Series.
University of Michigan John M. Olin Center for Law & Economics Working Paper Series.
Working Paper 100.
http://law.bepress.com/umichlwps/olin/art100
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