Modern Monetary Theory

流行りは過ぎてしまったのですが、備忘録として残しておきます。

Before the next hot take on how MMT is leading to a rethinking of macroeconomics, take a look at the evidence.

The only real debate is between those who disagree with its policy prescriptions, and those who strongly disagree.https://t.co/iKpF9Ylj9u pic.twitter.com/BuOSSkARHQ— Justin Wolfers (@JustinWolfers) March 13, 2019

via Olivier Blanchard, Justin Wolfers

財産権制度の測定

himaginary氏による要約の和訳は次の通りです。

標準的な財産権の括りにおいて、異なる要素――所有権と譲渡権など――は都市開発などの結果にどのように違う形で影響するだろうか? 本稿は、確定していない財産権を都市の地価と密度の標準的なモデルに織り込み、土地と財産への投資、未登記の状況、および土地の利用の効率性に関して予測を行う。我々の実証分析では、190ヶ国の土地の登記と譲渡に関する制度データを、様々な都市の最終形態と結び付けた。実証結果は概ねモデルの予測と整合的であり、より大きくはデムゼッツ(1967)の財産権制度のアプローチと整合的である。実際のところ、我々は、譲渡を円滑化する制度の質が世界全体で時間と共に改善したことを立証した。

弱い所有権は、より良い住宅を建てたり、より多くの土地を保有したりするインセンティブを減じる。登記の制限と都市のスラムとの間の実証的な結び付きは、我々の理論に沿うものである。財産の譲渡可能性の制限は、職場と居住地のマッチングを難しくする。財産譲渡に必要な手続きの数と交通渋滞との間の実証的な結び付きもまた、我々のモデルと整合的である。我々はまた、住宅ローン金融の発達は登記と譲渡の両制度に依拠するが、特に後者に依拠することを示した。

via himaginary

For Whom is the Corporation Managed?

  • Moderator
    • Edward Rock, Martin Lipton Professor of Law; Director, Institute for Corporate Governance & Finance, NYU School of Law
  • Panelists:
    • Martin Lipton ’55, Partner, Wachtell, Lipton, Rosen & Katz; Trustee and Adjunct Professor, NYU School of Law
    • Kathryn King Sudol ’98, Partner, Simpson Thacher & Bartlett; Trustee, NYU School of Law
    • Anthony Welters ’77, Executive Chairman, BlackIvy Group; Chairman Emeritus, NYU Law Board of Trustees

California Bill Requires Companies to Include Directors From Underrepresented Communities on their Boards

On August 30, 2020, the California State Legislature passed a new and unprecedented bill intended to promote greater diversity in corporate boardrooms. If signed into law by the governor, California’s Assembly Bill (AB) 979 would require each publicly held corporation whose principal executive offices are located in California to have a minimum number of directors from an “underrepresented community” on its board of directors.

Kruse v. Synapse Wireless, Inc., 2020 Del. Ch. LEXIS 238 (Del. Ch. July 14, 2020)

John Jenkins writes:

In many respects, the case presented a worst case scenario – it involved a minority squeeze-out of a private company at a price of approximately $0.43 per share with no market check or competitive sales process. Both parties pointed to valuation analyses prepared by their competing experts, which resulted in wildly divergent valuations. The petitioner’s expert opined that each Synapse share was worth $4.1876 at the time of transaction, while Synapse’s expert provided a valuation range of $0.06 to $0.11 per share. Vice Chancellor Slights acknowledged that this left him in a bind:

… As a result, with the exception of relatively minor adjustments to Synapse’s expert’s conclusions about the amount of its debt and available cash, the Vice Chancellor adopted that expert’s approach to the DCF analysis and concluded that the fair market value of the company’s shares was approximately $0.23 per share – nearly 50% below the purchase price.

via DealLawyers.com

Fir Tree Value Master Fund, LP v. Jarden Corp., 2020 WL 3885166, 2020 Del. LEXIS 237 (Del. July 9, 2020)

  • Fir Tree Value Master Fund, LP v. Jarden Corp., 2020 WL 3885166, 2020 Del. LEXIS 237 (Del. July 9, 2020)

On appeal, the petitioners argue the Court of Chancery erred as a matter of law when it adopted Jarden’s unaffected market price as fair value because it ignored what petitioners claim is a “long-recognized principle of Delaware law” that a corporation’s stock price does not equal its fair value. They also claim that the court abused its discretion by refusing to give greater weight to a discounted cash flow analysis populated with data selected by petitioners, ignoring market-based evidence of a higher value, and refusing to use the deal price as a “floor” for fair value.

We affirm the Court of Chancery’s judgment finding $48.31 as the fair value of each share of Jarden stock as of the date of the merger. There is no “long-recognized principle” that a corporation’s unaffected stock price cannot equate to fair value. Although it is not often that a corporation’s unaffected market price alone could support fair value, the court here did consider alternative measures of fair value—a comparable companies analysis, market-based evidence, and discounted cash flow models—but ultimately explained its reasons for not relying on that evidence. Finally, Jarden’s sale price does not act as a valuation floor when the petitioners successfully convinced the court that the deal price resulted from a flawed sale process, and the court found Jarden probably captured substantial synergies in the sale price.

When a market is informationally efficient in the sense that the market’s digestion and assessment of all publicly available information concerning a company is quickly impounded into the company’s stock price, the market price is likely to be more informative of fundamental value. And how informative of fundamental value an informationally efficient market is depends, at least in part, on the extent of material nonpublic information. It is a traditional Delaware view that in some cases the price a stock trades at in an efficient market is an important indicator of its economic value and should be given weight.

via Sheppard Mullin

1934年証券取引所法に関する実証分析

 今どきStigler先生、Benston先生、Manne先生だけに依拠して、情報開示の強制を否定するという議論を展開することはないと思いますが、これらの論文の影響力が大きいというのは事実でしょう。私は、Joel Seligman, Historical Need for a Mandatory Corporate Disclosure System, 9 J. Corp. L. 1 (1983)で、これらの議論には十分反論がされていると考えているのですが、現代的な手法に基づいて実証研究を行い、当時の影響について結論を得ることができればと願っていました。この点に関する最近の論文が、最近、SSRNにポストされました。

We examine whether the Securities Exchange Act of 1934 increased the information provided in accounting disclosures. Prior research examining the effects of the Act generally relies on long- window tests and yields mixed results. We improve upon prior designs by examining return, return volatility, and trading volume reactions to earnings news during short earnings announcement windows, which mitigates concerns that our results are driven by confounding events. Further, we employ a difference-in-differences design to control for potential contemporaneous structural changes. We document that the informativeness of earnings announcements of treatment firms (that withheld disclosure before the Act) increases relative to control firms (that disclosed voluntarily before the Act). The results are pronounced for large firms (higher regulatory scrutiny) and firms that do not pay dividends (possibly facing higher agency costs), and are symmetric for positive and negative earnings news.

 本論文は、情報の有用性は、示したものの、株主(社会)厚生の改善までは示していません。その点で、有用性に限界がありますが、それまでの実証研究から一歩踏み出した結果を示している点で、大変、興味深いものだと感じました。

Scott Callahan, Darius Palia & Eric L. Talley, Appraisal Arbitrage and Shareholder Value, 3 J. L. Fin. & Accounting, 147 (2018)

  • Scott Callahan, Darius Palia & Eric L. Talley, Appraisal Arbitrage and Shareholder Value, 3 J. L. Fin. & Accounting, 147 (2018)

This paper considers the question of whether the 2007 reforms had the negative repercussions that critics lament, both from theoretical and empirical perspectives. Theoretically, we extend the auction-design framework developed in Choi and Talley (2017) to derive a series of comparative statics related to observable factors concerning M&A transactions and target shareholder welfare. Using this model, we demonstrate that a credible threat of an appraisal action can sometimes constitute a valuable vehicle for augmenting shareholder value, whereby the specter of later appraisal value acts as a credible type of “reserve price” in a company auction. … More significantly, our model delivers testable empirical predictions relating to how “shocks” to the appraisal remedy affect expected shareholder value. In particular, we show that under plausible assumptions as to the status quo ante, a liberalizing shock to appraisal will lead to enhanced target shareholder welfare if it is accompanied by an increase in expected merger premia for appraisal eligible deals.

We then test this (and related) predictions empirically using the 2007 reforms as an appraisal-liberalizing shock. First, we demonstrate (consistent with our model) that deal premia are discernibly higher in appraisal eligible transactions (even when one accounts for the tax status of the deal). Second, we use a difference-in-differences specification to consider the combined effects of the 2007 shocks (Transkaryotic and the amendment of DGCL 262(h)) on deal premia for appraisal-eligible acquisition (using appraisal-ineligible deals as 4Formally, this condition also requires the assumption that under the status quo ante, a control). We find consistent evidence that the liberalizing 2007 shocks were followed by significant increases in premia associated with appraisal eligible deals relative to the control group.