Empirical Analysis of Fiduciary Law

This chapter offers an empirical analysis of fiduciary law, focusing on whether fiduciaries react to changes in fiduciary standards and which fiduciary rules maximize social welfare. Empirical studies of fiduciary law across three areas are discussed: corporate governance, fiduciary investment, and medical malpractice. The chapter considers fiduciary principles in corporate governance by looking at the duties of care and loyalty, citing empirical evidence implying that fiduciary duties in the corporate governance context influence corporate decision-making. It also examines the law of fiduciary investment, drawing on empirical evidence across three key areas: the implementation of the Prudent Investor Rule in private trusts, management of charitable trusts and prudent distributions, and the consequences of potentially conflicted advice to retirement savers. Finally, it explores the duty of care in the context of medical provider-patient relationships and the duty of loyalty in physician-client relationships.