For Richer, for Poorer: Bankers' Liability and Risk-taking in New England, 1867-1880

Abstract

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The Limits of Limited Liability: Evidence from Industrial Pollution

“…(2019)). Other papers examine unlimited liability for individual firms (Weinstein (2008)) and the personal liability of managers (Koudijs, Salisbury, and Sran (2019)).…”

“…For example, several papers study the effects of extended liability (i.e., "double liability") for bank shareholders prior to the 1930s (Esty (1998), Grossman (2001), Aldunate et al (2019)). Other papers examine unlimited liability for individual firms (Weinstein (2008)) and the personal liability of managers (Koudijs, Salisbury, and Sran (2019)).…”

Do We Become More Cautious for Others When Large Amounts of Money Are at Stake?

“…Financial agents have been accused of excessive risk-taking with other people’s money (Wengström et al, 2013), whereas medical professionals have been pointed out to be more conservative when treating patients (Garcia-Retamero & Galesic, 2012). Interestingly, there seems to be an absence of accountability held against financial decision-makers when things go wrong (Koudijs, Salisbury & Sran, 2018), a contrast to the rise in litigations against medical professionals which seem to explain their conservative choices (Garcia-Retamero & Galesic, 2012). If financial decision-makers were similarly held accountable for their decisions, perhaps a cautious shift would be observed.…”