Event Studies and the Law: Part II: Empirical Studies of Corporate Law

This article is the second part of a review of the event studymethodology, which has proved to be one of the most successfuluses of econometrics in policy analysis. In this part we focuson the methodology's application to corporate law and corporategovernance issues. Event studies have played an important rolein the making of corporate law and in corporate law scholarship.The reason for this input is twofold. First, there is a matchbetween the methodology and subject matter: the goal of corporatelaw is to increase shareholder wealth, and event studies providea metric for measurement of the impact upon stock prices ofpolicy decisions. Second, because the participants in corporatelaw debates share the objective of corporate law, to adopt policiesthat enhance shareholder wealth, their disagreements are overthe means to achieve that end. Hence, the discourse can be empiricallyinformed. The article concludes by sketching the methodology'suse in evaluating the economic effects of regulation. Whileevent studies' usefulness for policy analysis is by now familiarin the corporate law setting, we hope that our two-part reviewwill suggest appropriate applications to other fields of law.     

More Sinned Against than Sinning? The Case of the Arab Office, Washington, 1945-1948

In 1945, as a final settlement of the Palestine question drew near, the Arab states established the Arab Office, Washington, as part of their unprecedented effort to influence public and elite opinion on this matter in the United States. It was staffed by many of the leading young Arab intellectuals of the era. This article charts the Arab Office's attempt to reduce American support for the creation of a Jewish state in Palestine. In particular, it examines the accusations, made at the time, that the Arab Office, in pursuing its anti-Zionist agenda had co-operated with leading American anti-Semites and was under the control of the notorious former Mufti of Jerusalem, who had collaborated with Hitler during the Second World War.     

Norms,Behavioral Compliance,and Status Attribution in International Politics

Extant work on status attribution has largely focused on major powers or state capabilities as key explanatory factors driving these social processes and suggests that status considerations increase conflicts between states. We argue for a more comprehensive approach to status attribution that considers international norms as another major factor that is weighed in the attribution process. We contend that states (policymakers) evaluate one another not only on the basis of economic and military capabilities but also on the extent to which there is behavioral conformance with normative expectations and reward one another dependent upon whether these expectations are met. However, this attribution of status is dependent upon the level of contestation pertaining to that norm. Using a data set that assesses consistency with six different norms (resource transference, multilateralism, economic liberalism, democratic governance, respect for human rights, and peaceful dispute resolution), we find that status attribution is associated with norm-consistent behavior but only when these norms are uncontested at the global level.     

Alternative Methods of Experience Rating Unemployment Insurance Employer Taxes

For most states the methodology used for assigning Unemployment Insurance tax rates to employers arose when the program was first established in 1935. More than 80 years later, with evolving employment relationships, state systems have become outmoded. This paper critiques current experience rating methods and presents new methodologies that are much easier to operate and that improve the incentives for employers to increase employment. The proposed methods would assess taxes based on employment or payroll variation such that growing firms would have lower taxes. A simulation analysis illustrates the impact of the new methods on employer groups.     

Rethinking ‘Five Eyes’ Security Intelligence Collection Policies and Practice Post Snowden

The Edward Snowden leaks challenge policy makers and the public's understanding and perspectives on the role of security intelligence in liberal democratic states. This article explores the challenges confronting security intelligence collection by the ‘Five Eyes’ countries – particularly those most affected by the leaks. We argue that the debate now needs to move beyond simplistic notions of privacy vs. security to a more detailed understanding of the policy and ethical dilemmas confronting policy makers and intelligence agencies. To that end, we provide a schematic framework (methods, context and target) to promote a better understanding of the practical, policy and ethical problems for security intelligence collection emerging post Snowden. The framework is a first step in identifying common principles that could be used develop an ethically informed set of policy guidelines to help decision makers better navigate between citizen's two basic rights: security and privacy.