Skip to main content

Research Repository

Advanced Search

Why do businesses incorporate in other EU Member States? An empirical analysis of the role of conflict of laws rules

Gerner-Beuerle, Carsten; Mucciarelli, Federico M.; Schuster, Edmund; Siems, Mathias

Why do businesses incorporate in other EU Member States? An empirical analysis of the role of conflict of laws rules Thumbnail


Authors

Carsten Gerner-Beuerle

Federico M. Mucciarelli

Edmund Schuster

Mathias Siems



Abstract

Research in law, political science and economics has taken a strong interest in the way companies strategically incorporate in foreign jurisdictions. However, the empirical research about corporate mobility in the EU has so far been limited in two respects: it has focused on the analysis of foreign companies in the UK and it has mainly been concerned with differences in the costs of incorporation such as minimum capital requirements. This paper aims to fill these gaps. It is the first paper that presents data on incorporations of foreign businesses in the commercial registers of each EU Member State. It is also the first one to assess the impact of differences in the conflict of laws rules applicable to companies as they reflect the case law of the Court of Justice on the freedom of establishment. It finds that countries which have a clear-cut version of the ‘incorporation theory’ attract more incorporations than countries which have retained elements of the ‘real seat theory’. The paper also discusses the policy implications from these findings for EU harmonisation in this field.

Citation

Gerner-Beuerle, C., Mucciarelli, F. M., Schuster, E., & Siems, M. (2018). Why do businesses incorporate in other EU Member States? An empirical analysis of the role of conflict of laws rules. International Review of Law and Economics, 56, 14-27. https://doi.org/10.1016/j.irle.2018.05.002

Journal Article Type Article
Acceptance Date May 10, 2018
Online Publication Date May 29, 2018
Publication Date Dec 1, 2018
Deposit Date May 29, 2018
Publicly Available Date May 29, 2020
Journal International Review of Law and Economics
Print ISSN 0144-8188
Publisher Elsevier
Peer Reviewed Peer Reviewed
Volume 56
Pages 14-27
DOI https://doi.org/10.1016/j.irle.2018.05.002
Related Public URLs https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3012139

Files





You might also like



Downloadable Citations