Business, Management and Accounting
4 years ago

Stronger Investor Protection Laws Lead to Better Corporate Governance Worldwide

SSRN Electronic Journal
Investor Protection and Corporate Governance
Rafael La Porta, Florencio López de Silanes, Andrei Shleifer, Robert W. Vishny

Paper Summary

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The article discusses how laws protecting investors affect corporate governance in different countries. It shows that stronger legal protection leads to better financial markets and more access to external finance for firms. The study suggests that focusing on legal protections is more helpful for understanding and improving corporate governance than just looking at different financial systems.