The effect of Delaware incorporation on firm value is an enduring question in corporate law. Robert Daines shifted the terms of this debate in Does Delaware Law Improve Firm Value? (2001) by showing that publicly traded Delaware corporations, controlling for a number of other factors, were worth more money. Daines interpreted this to mean that Delaware’s corporate law increased firm value, particularly as it relates to hostile takeovers.
In my paper, Is There a Delaware Effect for Controlled Firms?, I present new empirical evidence on whether the Delaware premium applies to firms for which takeover law is not relevant: … Read more