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Shareholder Protection: A Leximetric Approach

Author

Listed:
  • PRIYA P. LELE

    (University of Cambridge)

  • MATHIAS M. SIEMS

    (University of Cambridge)

Abstract
In this article we build a new and meaningful shareholder protection index for five countries and code the development of the law for over three decades. This quantification of legal rules (“leximetrics†) provides interesting possibilities for comparing variations across time series and across legal systems. For instance, our study finds, that in all of our panel countries shareholder protection has been improving in the last three decades; that the protection of minority against majority shareholders is considerably stronger in “blockholder countries†as compared to the non-blockholder countries and that convergence in shareholder protection is taking place since 1993 and is increasing since 2001. Finally, our examination of the legal differences between the five countries does not confirm the distinction between common law and civil law countries

Suggested Citation

  • Priya P. Lele & Mathias M. Siems, 2007. "Shareholder Protection: A Leximetric Approach," Money Macro and Finance (MMF) Research Group Conference 2006 170, Money Macro and Finance Research Group.
    • Handle: RePEc:mmf:mmfc06:170
    as

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    File URL: http://repec.org/mmf2006/up.13076.1159533645.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Shareholder protection; leximetrics; numerical comparative law; law and;
    All these keywords.

    JEL classification:

    • G00 - Financial Economics - - General - - - General
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation

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