Regulatory competition in European corporate and capital market law [Elektronische Ressource] : an empirical analysis / vorgelegt von Lars Hornuf

Lars Hornuf

Informations

• Publié par: ludwig-maximilians-universitat_munchen
• Publié le: 01 janvier 2010
• Nombre de lectures: 26
• Langue: English
• Poids de l'ouvrage: 1 Mo

Extrait

Regulatory Competition in European
Corporate and Capital Market Law:

An Empirical Analysis




Inaugural-Dissertation


zur Erlangung des Grades

Doctor oeconomiae publicae (Dr. oec. publ.)

an der Ludwig-Maximilians-Universität München

Volkswirtschaftliche Fakultät


im Jahr 2010


vorgelegt von


Lars Hornuf




Referent: Prof. Dr. Andreas Haufler
Korreferent: Prof. Dr. Horst Eidenmüller, LL.M.
Promotionsabschlussberatung: 1. Juni 2011











To My Grandfather, Gerhard
Acknowledgments

First of all, I would like to thank my two supervisors Professor Dr. Horst
Eidenmüller and Professor Dr. Andreas Haufler for their support and inspiring
comments. Moreover, I am very much indebted to Professor Dr. Andreas Engert,
with whom I shared hours of exciting discussions about financial economics.
I am also grateful for the comments I received from Dr. Reiner Braun, Professor
Robert Cooter, Ph.D., Professor Douglas Cumming, Ph.D., Dr. Matthias Dischinger,
Professor Dr. Florian Englmaier, Tilmann Frobenius, Erich Gluch, Professor Dr.
Florian Heiss, Beatrice Scheubel, Johanna Stark, Professor Pravin Trivedi, Ph.D.,
Dr. Felix Reinshagen, Markus Reps, Tilman Turck, Professor Dr. Joachim Winter
and Dr. Klaus Wohlrabe. I furthermore thank Julie-Andrea Bartmuß and Tabea
Herrmann for their excellent research assistance.
The German Research Foundation (DFG) granted financial support for the research
project through the Exzellenzinitiative, which is something I gratefully acknowledge.

Special thanks go to my family and friends. In particular, I would like to thank
Dr. Heike Hancok who encouraged and supported me with her loving solicitousness
when I needed it most.
Lars Hornuf, Munich, December 2010
Contents

1.  Introduction .......................................................................................................... 1

2.  Does Charter Competition Foster Entrepreneurship? A Difference-in-
Differnce Approach to European Company Law Reform ............................... 8 
2.1.  Introduction ............................................................................................................ 8 
2.2.  Entrepreneurship and the costs of registration ..................................................... 13 
2.3.  Charter competition and company law reform in Europe .................................... 17 
2.3.1.  Recognising foreign companies: Real seat vs. incorporation theory ..... 17 
2.3.2.  Company law reforms ............................................................................ 19 
2.4.  Methodology ........................................................................................................ 21 
2.4.1.  Company law reforms as quasi-experiments ......................................... 21 
2.4.2.  Sample construction ............................................................................... 24 
2.5.  Empirical findings ................................................................................................ 28 
2.5.1.  Descriptive statistics .............................................................................. 28 
2.5.2.  Does corporate law reform promote the domestic LLC form? .............. 30 
2.5.3. ote entrepreneurship? ........................ 33 
2.6.  Robustness: Germany .......................................................................................... 36 
2.7.  Summary and conclusion ..................................................................................... 38

3.  Incorporating under European Law: The Societas Europaea As a Vehicle
for Legal Arbitrage ............................................................................................ 41 
3.1.  Introduction .......................................................................................................... 41 
3.2.  Literature .............................................................................................................. 43 
3.3.  Hypotheses ........................................................................................................... 45 
3.4.  Methodology and data ......................................................................................... 51 
3.4.1.  Data from company registers ................................................................. 51 
3.4.2.  Telephone survey ................................................................................... 53 
3.4.3.  Regression model 54 
3.5.  Empirical findings ................................................................................................ 59 
3.5.1.  Descriptive statistics .............................................................................. 59 
3.5.1.1.  Time trend .............................................................................................. 59 
3.5.1.2.  Regional distribution 61 
3.5.1.3.  Firm size 64 3.5.1.4.  Industry .................................................................................................. 66 
3.5.1.5.  Board structure ....................................................................................... 67 
3.5.1.6.  Incorporation methods ........................................................................... 68 
3.5.2.  Survey results ......................................................................................... 69 
3.5.3.  Regression results .................................................................................. 72 
3.6.  Summary and conclusion ..................................................................................... 76

4.  How Does the Market React to the Societas Europaea? ................................ 80 
4.1.  Introduction .......................................................................................................... 80 
4.2.  Literature .............................................................................................................. 84 
4.3.  Data ...................................................................................................................... 86 
4.4.  Methodology ........................................................................................................ 90 
4.5.  Empirical findings ................................................................................................ 91 
4.6.  Assessing the present findings ............................................................................. 93 
4.7.  Concluding remarks ............................................................................................. 95 
Appendix ...................................................................................................................... 97

5.  Where Do Firms Issue Debt? An Empirical Analysis of Issuer Location and
Regulatory Competition in Europe ................................................................ 100 
5.1.  Introduction ........................................................................................................ 100 
5.2.  The legal environment for corporate debt security issues ................................. 103 
5.2.1.  ‘Location’ of issuer and parent ............................................................ 104 
5.2.2.  Tax law ................................................................................................ 105 
5.2.3.  Creditor protection rules ...................................................................... 108 
5.3.  Methodology and data ....................................................................................... 112 
5.3.1.  Econometric approach ......................................................................... 112 
5.3.2.  Data and summary statistics ................................................................ 115 
5.4.  Results ................................................................................................................ 129 
5.4.1.  Gravity model ...................................................................................... 129 
5.4.1.1.  Debt securities 129 
5.4.1.2.  Subsamples: Straight bonds and asset backed securities ..................... 133 
5.4.1.3.  Push and pull factors ............................................................................ 136 
5.4.2.  An alternative ordered probit model .................................................... 140 
5.5.  Summary and conclusion ................................................................................... 142
6.  Choice of Law in Debt Securities: A Case Study of French, German and
Italian Issues 1998 – 2008 ................................................