Robert Rhee claims to have determined that Delaware corporate law does not add value relative to that of non-Delaware states. corpgov.law.harvard.edu/2022/09/30/the But what if corporate law generally does not impact firm value across a broad spectrum of firms?
In other words, what if corporate law is not correlated (let alone causally linked) to firm performance. Instead, the purpose of corporate law might not be to improve firm performance across the board but to punish individual wrongdoers.
Put another way, given evidence that corporate governance quality metrics are not correlated to firm performance, why would we expect corporate law to be so correlated?
See, e.g., Roberta Romano, A Cautionary Note on Drawing Lessons from Comparative Corporate Law, 102 YALE L. J. 2021 (1993) (concluding that key factors affecting market performance do not correlate to corporate governance patterns); Bernard Black, Does Corporate Governance Matter? 149 U. Pa. L. Rev. 2131 (2001) (analyzing the relationship between corporate governance and market value); Mark S. Klock et al., Does Corporate Governance Matter to Bondholders?, 40 J. Fin. & Quant. Anal. 693 (2005).
