Lowering the minimum-capital requirement for companies with limited liability. An analysis in terms of commercial law

• Authors: Szalai Akos
• Languages of publication: PL

Abstracts

EN

One recurrent issue in Hungarian commercial law is whether the minimum-capital requirement for companies with limited liability should be reduced, or even abolished. The study examines the effect that would have on the propensity of such firms to take risks (caution). It seeks to prove that the incentive effect of capital reduction (and thereby the limitation of liability) differs depending on whether (1) the decision-maker is risk-neutral or risk-avoiding, (2) what liability regulation (strict or negligence-based) is applied in cases of damages, and (3) what relationship pertains between the managers and the owners of the firm.

Keywords

EN

COMMERCIAL LAW; DECISION-MAKING UNDER RISK AND UNCERTAINTY; MINIMUM CAPITAL REQUIREMENT FOR COMPANIES

Discipline

• ECONOMICS: ECONOMICS

• Publisher: Committee for Economic Sciences of the Hungarian Academy of Sciences
• Journal: Kozgazdasagi Szemle (Economic Review)
• Year: 2008
• Volume: 55
• Issue: 6
• Pages: 548-564
• Document type: ARTICLE

Contributors

author

Szalai Akos

• Akos Szalai, no address given, contact the journal editor

Identifiers

CEJSH db identifier

10HUAAAA078626