The Stock Market, the Market for Corporate Control and the Theory of the Firm: Legal and Economic Perspectives and Implications for Public Policy
Abstract
It is argued here that - contrary to current conventional wisdom - an active market for corporate control is not an essential ingredient of either company law reform or financial and economic development. The absence of such a market in coordinated market systems during their modern economic development was not an evolutionary deficit, but an effective and positive institutional arrangement. The economic and social costs associated with restructuring driven by hostile takeover bids, which are increasingly seen as prohibitive in the liberal market economies, would most likely harm the prospects for growth in developing and transition systems.Download Info
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Paper provided by ESRC Centre for Business Research in its series ESRC Centre for Business Research - Working Papers with number wp365.Length:
Date of creation: Jun 2008
Date of revision:
Handle: RePEc:cbr:cbrwps:wp365
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Web page: http://www.cbr.cam.ac.uk/
Related research
Keywords: takeovers; market for corporate control; varieties of capitalism;Find related papers by JEL classification:
- G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
- G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation
- K22 - Law and Economics - - Regulation and Business Law - - - Business and Securities Law
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-08-21 (All new papers)
- NEP-CFN-2008-08-21 (Corporate Finance)
- NEP-HIS-2008-08-21 (Business, Economic & Financial History)
- NEP-LAW-2008-08-21 (Law & Economics)
References
References listed on IDEASPlease report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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"Corporate Governance, Competetion, The new International Financial Architecture and Large Corporations in Emerging Markets,"
MPRA Paper
24305, University Library of Munich, Germany.
- Ajit Singh & Bruce Weisse & Alaka Singh, 2002. "Corporate governance, competition, the new international financial architecture and large corporations in emerging markets," ESRC Centre for Business Research - Working Papers wp250, ESRC Centre for Business Research.
- Mathias Siems, 2007. "Shareholder Protection around the World ("Leximetric II")," ESRC Centre for Business Research - Working Papers wp359, ESRC Centre for Business Research.
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- repec:cup:cbooks:9780521829663 is not listed on IDEAS
- Ajit Singh, 1999. "Should Africa promote stock market capitalism?," Journal of International Development, John Wiley & Sons, Ltd., vol. 11(3), pages 343-365.
Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- sarkar, prabirjit, 2011. "Common Law vs. Civil Law: Which System Provides More Protection to Shareholders and Creditors and Promotes Financial Development," MPRA Paper 32930, University Library of Munich, Germany.
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