Dont Buy Shares Without It: Limited Liability Comes to American Express
What is the value of limited liability to the corporation? Financial economists take the value of limited liability for granted and there has been little empirical study of its value. Few natural experiments allow us to estimate the value of limited liability. One of these, however, is the case of American Express Company. It appears that American Express was the last publicly traded unlimited liability firm in the United States, becoming a corporation with limited liability only in 1965. In this paper, I examine the effects of adopting limited liability on the value of American Express shares, and on their risk. Consistent with economic theory and previous empirical research Weinstein (2003), I find little effect on firm value, and a reduction in both systematic and unsystematic risk.
Mark I. Weinstein
Marshall School of Business and Gould School of Law University of Southern California
国际会议
昆明
英文
1-36
2005-07-05（万方平台首次上网日期，不代表论文的发表时间）