Skip to main content
×
Home
    • Aa
    • Aa

Incorporating under European Law: The Societas Europaea as a Vehicle for Legal Arbitrage*

  • Horst Eidenmüller (a1), Andreas Engert (a2) and Lars Hornuf (a3)
Abstract
Abstract

After a slow start, the European Company (Societas Europaea – SE) has become increasingly popular. Besides documenting the growth of this new company type, we examine whether firms choose to incorporate in the SE corporate form because they engage in ‘legal arbitrage’ by exploiting differences in legal rules between jurisdictions. We specify a number of hypotheses on particular legal arbitrage motives. To validate our hypotheses, we use a broad telephone survey among SE users in Germany as well as a simple country-level regression model based on a unique, hand-collected dataset on SE incorporations. We find strong evidence that firms use the SE to mitigate the effect of mandatory codetermination rules. Establishing a one-tier board structure (in jurisdictions that impose a two-tier structure on their national public companies) and taking advantage of the SE's mobility for tax purposes also seem to be driving SE formations. By contrast, our analysis fails to support the suggestion that firms use the SE to shop for the most favourable national company law to fill the gaps in the SE Regulation.

Copyright
Recommend this journal

Email your librarian or administrator to recommend adding this journal to your organisation's collection.

European Business Organization Law Review (EBOR)
  • ISSN: 1566-7529
  • EISSN: 1741-6205
  • URL: /core/journals/european-business-organization-law-review-ebor
Please enter your name
Please enter a valid email address
Who would you like to send this to? *
×

Keywords:

Metrics

Full text views

Total number of HTML views: 0
Total number of PDF views: 36 *
Loading metrics...

Abstract views

Total abstract views: 242 *
Loading metrics...

* Views captured on Cambridge Core between September 2016 - 26th July 2017. This data will be updated every 24 hours.