Investor protection and equity markets
Open accessAbstract
We present a simple model of an entrepreneur going public in an environement with poor legal protection of outside shareholders. The model incorporates elements of Becker's (1968) "crime and punishment" framework into a corporate finance environment of Jensen and Meckling (1976). We examine the entrepreneur's decision and the market equilibrium. The model is consistent with a number of empirical regularities concerning the relationship between investor protection and corporate finance.
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Disclosure regulation can mitigate dead-weight losses to the economy.
“Finally, disclosure regulation can mitigate dead-weight losses to the economy.”
From Mandatory CSR and sustainability reporting: economic analysis and literature review (2021) · cites this paper as Shleifer and Wolfenzon 2002
Cites
La Porta, R., Lopez‐de‐Silanes, F., Shleifer, A., & Vishny, R. W. (1998) · Journal of Political Economy · doi:10.1086/250042 · Cited by 18,025 · see citing works
Self-citationInvestor protection and corporate governance
La Porta, R., Lopez-de-Silanes, F., Shleifer, A., & Vishny, R. (2000) · Journal of Financial Economics · doi:10.1016/s0304-405x(00)00065-9 · Cited by 6,848 · cited 3× · see citing works
“…1999); (4) higher valuation of listed firms relative to their assets (Claessens et al. 2002, La Porta et al. 2002); (5) greater dividend payouts (La Porta et al. 2000); (6) lower concentration of ownership and control (European Corporate Governance Network 1997; La Porta, Lopez-de-Silanes and…”
Self-citationThe separation of ownership and control in East Asian Corporations
Claessens, S., Djankov, S., & Lang, L. H. P. (2000) · Journal of Financial Economics · doi:10.1016/s0304-405x(00)00067-2 · Cited by 5,754 · see citing works
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Mandatory CSR and sustainability reporting: economic analysis and literature review
Christensen, H. B., Hail, L., & Leuz, C. (2021) · Review of Accounting Studies · doi:10.1007/s11142-021-09609-5 · Cited by 1,923 · see citing works
Governance and stock market performance
Hooper, V., Sim, A. B., & Uppal, A. (2009) · Economic Systems · doi:10.1016/j.ecosys.2009.03.001 · Cited by 87 · see citing works
- Authors
- Shleifer, A., & Wolfenzon, D.
- Affiliations
- Harvard University (US)
- New York University (US)
- Corresponding author
- Shleifer, Andrei
- Venue
- Journal of Financial Economics
- Publisher
- Elsevier BV
- Published
- 2002-10
- Volume
- 66
- Issue
- 1
- Pages
- 3-27
- ISSN
- 0304-405X (ISSN-L)
- OpenAlex
- W3121987147
- Cited by
- 1,077
- References
- 3
- Citations by year
- 2026: 17 · 2025: 32 · 2024: 23 · 2023: 25 · 2022: 30 · 2021: 26 · 2020: 44 · 2019: 55 · 2018: 42 · 2017: 33 · 2016: 45 · 2015: 41 · 2014: 64 · 2013: 55 · 2012: 60
- FWCI
- 97.78
- Type
- journal article
- Language
- en
- Open access
- green
- doi.org
- Locations
- Journal of Financial Economics (publishedVersion)
- SSRN Electronic Journal (publishedVersion)
- Faculty Digital Archive (New York University Florence) (submittedVersion)
- RePEc: Research Papers in Economics (submittedVersion)
- Topics
- Social Sciences › Business, Management and Accounting › Accounting › Corporate Finance and Governance
- Social Sciences › Economics, Econometrics and Finance › Finance › Financial Markets and Investment Strategies
- Social Sciences › Business, Management and Accounting › Accounting › Private Equity and Venture Capital
- Keywords
- investor protection, initial public offerings, outside shareholders, corporate governance, crime and punishment, capital structure, capital flows, stock market
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