Shareholder protection in Australia strengthened, creditor protection remains stable.
The article uses a method called leximetric analysis to study changes in shareholder and creditor protection in Australia from 1970 to 2010. Shareholder protection has increased, especially against actions of the board of directors. Creditor protection, on the other hand, has remained relatively stable. Over the 40-year period, there was a positive link between shareholder and creditor protection, but this connection has weakened in recent years.