Tirole 53-56 - Tirole 53-56 International Comparisons of...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Tirole 53-56 International Comparisons of Policy environments here are two legal traditions: Common law: o Prevails in English speaking countries o Emphasis on judiciary independence o Civil law: o Stresses codification o More determination makes it easier for interest groups to capture it o Associated with politically determined careers for judges o French, German and Scandinavian civil laws Correlations between legal systems and investor protection Distinguish between shareholder and creditor rights Extent of investor protection impact the development of financial markets Positive covariation between shareholder protection and the breadth of the equity market Common law countries have highest ratio of external capital (especially equity) to GDP Common law countries of largest number of firms undergoing IPOs Systems with poor investor protection to resort to substitute mechanisms
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This document was uploaded on 11/10/2011.

Page1 / 2

Tirole 53-56 - Tirole 53-56 International Comparisons of...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online