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Legal Determinants of External Finance

Author

Listed:
  • Rafael LaPorta
  • Florencio Lopez-de-Silanes
  • Andrei Shleifer
  • Robert W. Vishny

Abstract

Using a sample of 49 countries, we show that countries with poorer investor protections, measured by both the character of legal rules and the quality of law enforcement, have smaller and narrower capital markets. These findings apply to both equity and debt markets. In particular, French civil law countries have both the weakest investor protections and the least developed capital markets, especially as compared to common law countries.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Rafael LaPorta & Florencio Lopez-de-Silanes & Andrei Shleifer & Robert W. Vishny, "undated". "Legal Determinants of External Finance," Working Paper 19443, Harvard University OpenScholar.
    • Handle: RePEc:qsh:wpaper:19443
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    File URL: http://scholar.harvard.edu/shleifer/node/19443
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    References listed on IDEAS

    as
    1. Robert G. King & Ross Levine, 1993. "Finance and Growth: Schumpeter Might Be Right," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 108(3), pages 717-737.
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    4. Rafael La Porta & Florencio Lopez-de-Silanes & Andrei Shleifer & Robert W. Vishny, 1998. "Law and Finance," Journal of Political Economy, University of Chicago Press, vol. 106(6), pages 1113-1155, December.
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    More about this item

    JEL classification:

    • G - Financial Economics
    • E - Macroeconomics and Monetary Economics

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