Deakin, Simon
[VerfasserIn]
;
Sarkar, Prabirjit
[Sonstige Person, Familie und Körperschaft];
Siems, Mathias
[Sonstige Person, Familie und Körperschaft]
Is There a Relationship Between Shareholder Protection and Stock Market Development?
Erschienen in:European Corporate Governance Institute (ECGI) - Law Working Paper ; No. 377/2017
Umfang:
1 Online-Ressource (38 p)
Sprache:
Englisch
DOI:
10.2139/ssrn.3078529
Identifikator:
Entstehung:
Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments November 2017 erstellt
Beschreibung:
The paper uses recently created datasets measuring legal change over time in a sample of 28 developed and emerging economies to test whether the strengthening of share-holder rights in the course of the mid-1990s and 2000s promoted stock market development in those countries. It finds only weak and equivocal evidence of a positive effect of shareholder protection on market capitalisation, the value of stock trading, and the turnover ratio, and a negative impact on the number of listed companies. There is stronger evidence of reverse causality, in the sense of stock market development at country level generating changes in shareholder protection law. We conclude, firstly, that legal reforms were at least in part an endogenous response to stock market development and not simply a reaction to the generation of global standards; but, secondly, that the laws passed in response to the demand for shareholder empowerment did not consistently have the expected impact on financial markets, and may have had some negative and perverse results