An end to consensus the selective impact of corporate law reform on financial development Report as inadecuate




An end to consensus the selective impact of corporate law reform on financial development - Download this document for free, or read online. Document in PDF available to download.

Abstract

Legal origins theory suggests that law reform,strengthening shareholder and creditor rights, should enhance financial development. We use recently created datasets measuring legal change over time in a sample of 25 developing, developed and transition countries to test this claim. We find that increases in shareholder protection contribute to stock market growth in the common law world and in developing countries, but not in the civil law world. We also find evidence of reverse causation, with financial development triggering legal changes in the developing world. We consider a number of reasons for the selective impact of law reform, focusing on the endogeneity of the legal system to its economic context, and on resulting complementarities between legal andfinancial institutions.

JEL Codes: G33, G34, K22, O16.



Item Type: MPRA Paper -

Original Title: An end to consensus? the selective impact of corporate law reform on financial development-

Language: English-

Keywords: legal origins, company law, shareholder rights, creditor rights, financial development-

Subjects: K - Law and Economics > K2 - Regulation and Business Law > K22 - Business and Securities LawG - Financial Economics > G3 - Corporate Finance and Governance > G34 - Mergers ; Acquisitions ; Restructuring ; Corporate GovernanceO - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O16 - Financial Markets ; Saving and Capital Investment ; Corporate Finance and GovernanceG - Financial Economics > G3 - Corporate Finance and Governance > G33 - Bankruptcy ; Liquidation-





Author: Deakin, Simon

Source: https://mpra.ub.uni-muenchen.de/39047/







Related documents