Comments on: The Nature of the (Law) Firm http://organizationsandmarkets.com/2008/04/23/the-nature-of-the-law-firm/ Economics of organizations, strategy, entrepreneurship, innovation, and more Sun, 20 Jul 2008 05:18:46 +0000 http://wordpress.org/?v=MU By: Michael F. Martin http://organizationsandmarkets.com/2008/04/23/the-nature-of-the-law-firm/#comment-70705 Michael F. Martin Thu, 10 Jul 2008 15:18:57 +0000 http://organizationsandmarkets.wordpress.com/?p=1500#comment-70705 The ethical rules were never in place for any good reasons to begin with: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1148431 Why does the public generally despise lawyers? Because they know greedy protectionism when they see it. The ethical rules were never in place for any good reasons to begin with:

http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1148431

Why does the public generally despise lawyers? Because they know greedy protectionism when they see it.

]]> By: Peter Klein http://organizationsandmarkets.com/2008/04/23/the-nature-of-the-law-firm/#comment-70177 Peter Klein Sun, 27 Apr 2008 20:02:19 +0000 http://organizationsandmarkets.wordpress.com/?p=1500#comment-70177 Warren, yes, that's what I understand from conversations with Gordon. What I meant was why shouldn't they be allowed to? Is there an efficiency reason for restricting non-employee ownership? Warren, yes, that’s what I understand from conversations with Gordon. What I meant was why shouldn’t they be allowed to? Is there an efficiency reason for restricting non-employee ownership?

]]> By: Warren Miller http://organizationsandmarkets.com/2008/04/23/the-nature-of-the-law-firm/#comment-70171 Warren Miller Sun, 27 Apr 2008 04:32:00 +0000 http://organizationsandmarkets.wordpress.com/?p=1500#comment-70171 Peter, I believe that law firms can't do IPOs for the same reason that CPA firms can't: statutes that restrict who can own an equity interest in such firms. There are no such statutes for consulting firms. To my knowledge, there has been but one attempt to circumvent the CPA-firm restriction: Century Business Services, Inc., now CBIZ Inc. It's had a rocky, up-and-down existence. CBIZ offers every service a typical CPA firm does, except "assurance services" (audits and reviews). For those, it has an affiliate that, on its website, CBIZ goes to some lengths to emphasize is owned by CPAs and is a separate legal entity. Link: http://www.cbiz.com/page.asp?pid=3104. So I guess CBIZ is, in reality, a consulting firm with a CPA-firm sibling. Peter, I believe that law firms can’t do IPOs for the same reason that CPA firms can’t: statutes that restrict who can own an equity interest in such firms. There are no such statutes for consulting firms.

To my knowledge, there has been but one attempt to circumvent the CPA-firm restriction: Century Business Services, Inc., now CBIZ Inc. It’s had a rocky, up-and-down existence. CBIZ offers every service a typical CPA firm does, except “assurance services” (audits and reviews). For those, it has an affiliate that, on its website, CBIZ goes to some lengths to emphasize is owned by CPAs and is a separate legal entity. Link: http://www.cbiz.com/page.asp?pid=3104. So I guess CBIZ is, in reality, a consulting firm with a CPA-firm sibling.

]]> By: nl http://organizationsandmarkets.com/2008/04/23/the-nature-of-the-law-firm/#comment-70148 nl Thu, 24 Apr 2008 20:35:16 +0000 http://organizationsandmarkets.wordpress.com/?p=1500#comment-70148 you might also want to look at Andrew von Nordenflycht's work you might also want to look at Andrew von Nordenflycht’s work

]]> By: nl http://organizationsandmarkets.com/2008/04/23/the-nature-of-the-law-firm/#comment-70147 nl Thu, 24 Apr 2008 20:24:15 +0000 http://organizationsandmarkets.wordpress.com/?p=1500#comment-70147 There's some stuff in org econ theory on why the partnership form - Rebitzer and Taylor JOLE 07, Bar-Isaac RAND 08, Levin and Tadelis QJE 2005. George Baker has a law review article with Rachel Parkin reporting on some empirical work on the legal profession. There’s some stuff in org econ theory on why the partnership form - Rebitzer and Taylor JOLE 07, Bar-Isaac RAND 08, Levin and Tadelis QJE 2005.
George Baker has a law review article with Rachel Parkin reporting on some empirical work on the legal profession.

]]> By: Chris http://organizationsandmarkets.com/2008/04/23/the-nature-of-the-law-firm/#comment-70144 Chris Thu, 24 Apr 2008 14:06:32 +0000 http://organizationsandmarkets.wordpress.com/?p=1500#comment-70144 "Managing the Professional Services Firm" (<a href="http://www.amazon.com/Managing-Professional-Service-David-Maister/dp/0684834316" rel="nofollow">http://www.amazon.com/Managing-Professional-Service-David-Maister/dp/0684834316</a>) is an absolute must read to understand the basic concepts for running a firm of any nature. It explains basic and semi-advanced concepts of organizational structure, leverage, and other aspests of a firm's makeup. “Managing the Professional Services Firm” (http://www.amazon.com/Managing-Professional-Service-David-Maister/dp/0684834316) is an absolute must read to understand the basic concepts for running a firm of any nature. It explains basic and semi-advanced concepts of organizational structure, leverage, and other aspests of a firm’s makeup.

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