Does corporate law need scandals?

Fraud, scams, bankruptcies, plummeting market indices – these are the disturbing public hallmarks of corporate scandals. Progress, it is likely, is not the first thing that comes to mind when a corporate scandal breaks. However, a closer examination reveals that scandals have had a profound impact on the development of securities and capital markets law, often serving as catalysts for reform.   

Fiascos like the collapse of Wirecard are complex, dynamic processes that unfold over time, beginning with revelations and evolving through public outcry, media scrutiny, accusations of wrongdoing, and potential legal consequences, including court proceedings. Ultimately lawmakers may respond by enacting reforms.   

Corporate scandals remain a relatively unstudied phenomenon. My research series aims to provide a comprehensive, nuanced analysis of corporate scandals from international and historical-comparative perspectives.

Holger Fleischer is a director at the Institute.
He studies company law and
capital markets law, among other things.
More on Holger Fleischer and his research can be found here.