The Cost of Capital: The Normative Foundation of Corporate and Corporate Insolvency Law?

SYNOPSIS

This paper explores whether the minimisation of the cost of capital should be the normative foundation of corporate law in a wider sense (including corporate insolvency law). Referring to empirical research it investigates the relevance of corporate insolvency for the cost of capital. Against this background, the paper shows that many existing rules and principles of corporate and corporate insolvency law can be explained applying a cost of capital approach. Subsequently, the normative theory suggested is examined from a broader theoretical perspective. In particular, an attempt is made to show the usefulness of a cost of capital based theory within the framework of established analytical and normative corporate law theories.

SPEAKER

Professor Felix Steffek

Dr Felix Steffek is a University Lecturer at the Faculty of Law of the University of Cambridge and a Senior Member of Newnham College. At Faculty level, he serves as Co-Director of the Centre for Corporate and Commercial Law (3CL) and Deputy Director of the Cambridge LLM programme. In College, he is Director of Studies for undergraduate and graduate students.

His research interests cover corporate law, insolvency law, commercial law, dispute resolution law and technology & law. He applies doctrinal analysis, comparison of laws, economic analysis and justice theory to advance theory and develop practical solutions.

Felix Steffek has published widely in his areas of interests and is a Member of the Editorial Board of the Journal of Corporate Law Studies, the Cambridge Yearbook of European Legal Studies and other academic journals. He is a Member of the Education Taskforce of the UK LawTech Delivery Panel.

He has acted as policy advisor and expert for the European Commission, the European Parliament, the World Bank, the OECD, national governments, courts, parliaments and science foundations. He received his education at Cambridge (LLM), Heidelberg (PhD, undergraduate) and Hamburg (Habilitation, court clerkship).

CHAIR

Assistant Professor Aurelio Gurrea Martinez
(SMU School of Law)