Center for Law and Economic Studies
In most countries large business enterprises today are organized as corporations. The corporation with its key attributes of independent personality, limited liability and free tradeability of shares has played a key role in most developed market economies since the 19th century and has made major inroads in emerging markets. We suggest that the resilience of the corporate form is a function of the adaptability of the legal framework to a changing environment. We analyze a country's capacity to innovate using the rate of statutory legal change, the flexibility of corporate law, and institutional change as indicators. Our findings suggest that origin countries are more innovative than transplant countries.
Katharina Pistor, Yoram Keinan, Jan Kleinheisterkamp & Mark D. West,
Innovation in Corporate Law,
Journal of Comparative Economics, Vol. 31, p. 676, 2003; Columbia Law School, The Center for Law & Economics Studies Working Paper No. 231
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