Economic incentives and corporate actions:

an essay on economic analysis of conflict resolution methods

Abstract

the article uses the economic analysis of conflict resolution methods to reflect on economic incentives in corporate actions. Initially, the economic analysis of law (AED) and what can be understood by economic analysis of the process or methods of conflict resolution are examined. Afterwards, the idea of ​​the basic model of litigation and the factors that affect the decision to initiate a civil dispute are explored. Next, reflections are presented on the incentive factors in corporate actions. In particular, the following are examined: the ordinarily high value involved in the dispute and the misalignment of such value in actions arising from holding administrators accountable; the costs of litigating, comparing the judicial and arbitration ways, reflecting on the impacts of the interest rate adopted and on the jurisprudence relating to succumbing fees in the incident of disregarding the legal entity; and, finally, the gap in expectations, heightened in corporate disputes by legal uncertainty resulting from scarce jurisprudence and informational asymmetry, analyzing the economic incentives present in the action of early production of evidence.