IDEAS home Printed from
MyIDEAS: Login to save this paper or follow this series

Legislation, investor protection and financial growth

  • Rainio, Elina

    (Bank of Finland Research)

Registered author(s):

    According to recent law and finance research, legislation is essential to financial development. More effi-cient financial markets would be achieved by reforming the laws governing investor protection and cor-porate governance systems. The Companies Act has traditionally played a very important role in the Fin-nish regulation of firms and financial markets. Nevertheless, the concrete effects of the Finnish corporate law have never before been examined properly. The aim of this study is to investigate the effects of the previous extensive reform of the Companies Act in 1980. The reform improved both shareholder and creditor rights, but the level of creditor rights rose substantially higher than the level of shareholder rights measured by different indices. The impact on stock returns was assessed by examining how news reports on the reform affected returns during the 1970s. Only the most important news had a significant impact on the returns. Otherwise there were no big surprises in the reform process and the stock prices adjusted efficiently to the new information relating to the small and closed financial markets. (pdf in Finnish)

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL:
    Download Restriction: no

    Paper provided by Bank of Finland in its series Research Discussion Papers with number 16/2006.

    in new window

    Length: 55 pages
    Date of creation: 10 Oct 2006
    Date of revision:
    Handle: RePEc:hhs:bofrdp:2006_016
    Contact details of provider: Postal:
    Bank of Finland, P.O. Box 160, FI-00101 Helsinki, Finland

    Web page:

    More information through EDIRC

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:hhs:bofrdp:2006_016. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Minna Nyman)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.