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Disappearing Paradigms in Shareholder Protection: Leximetric Evidence for 30 Countries, 1990-2013

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  • Dionysia Katelouzou
  • Mathias Siems

Abstract

Scholars frequently claim that path dependency of the law, the influence of the US model of corporate governance, and the role of legal origin and the stage of legal development are key for a comparative understanding of shareholder protection. This article, however, suggests that these paradigms of comparative company law gradually seem to disappear. The basis for our assessment is an original leximetric dataset that measures the development of shareholder protection for 30 countries over the last 24 years. Using tools of descriptive statistics, time series and cluster analysis, our main findings are that all legal origins have now in average about the same level of shareholder protection, that paternalistic tools have overtaken enabling tools of protection, and that after the global financial crisis this area has become a less frequent object of law reforms.

Suggested Citation

  • Dionysia Katelouzou & Mathias Siems, 2015. "Disappearing Paradigms in Shareholder Protection: Leximetric Evidence for 30 Countries, 1990-2013," Working Papers wp467, Centre for Business Research, University of Cambridge.
    • Handle: RePEc:cbr:cbrwps:wp467
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    Cited by:

    1. Wang, Hao & Han, Yonghui & Fidrmuc, Jan & Wei, Dongming, 2021. "Confucius Institute, Belt and Road Initiative, and Internationalization," International Review of Economics & Finance, Elsevier, vol. 71(C), pages 237-256.
    2. Huang Flora & Yeung Horace, 2018. "Law–Finance–Growth Nexus in the Context of Africa," The Law and Development Review, De Gruyter, vol. 11(2), pages 513-555, December.
    3. Ding Chen & Simon Deakin & Mathias Siems & Boya Wang, 2016. "Law, Trust & Institutional Change in China: Evidence from Qualitative Fieldwork," Working Papers wp485, Centre for Business Research, University of Cambridge.
    4. Harakeh, Mostafa & Lee, Edward & Walker, Martin, 2019. "The effect of information shocks on dividend payout and dividend value relevance," International Review of Financial Analysis, Elsevier, vol. 61(C), pages 82-96.
    5. Marc Berninger & Markus Klug & Dirk Schiereck, 2018. "Börsenrückzüge infolge steigender Corporate-Governance-Anforderungen – Empirische Evidenz von 13 europäischen Kapitalmärkten [Delistings due to Increased Corporate Governance Requirements – Empiric," Schmalenbach Journal of Business Research, Springer, vol. 70(4), pages 351-391, December.
    6. Ahiabor, Frederick S. & James, Gregory A. & Kwabi, Frank O. & Siems, Mathias M., 2018. "Shareholder protection, stock markets and cross-border mergers," Economics Letters, Elsevier, vol. 171(C), pages 54-57.
    7. Gerhard Schnyder & Mathias Siems & Ruth Aguilera & Centre for Business Research, 2018. "Twenty Years of 'Law & Finance': Time to Take Law Seriously," Working Papers wp501, Centre for Business Research, University of Cambridge.

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    More about this item

    Keywords

    Shareholder protection; corporate governance; company law; legal origin; leximetrics; legal transplants;
    All these keywords.

    JEL classification:

    • C38 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Classification Methdos; Cluster Analysis; Principal Components; Factor Analysis
    • F68 - International Economics - - Economic Impacts of Globalization - - - Policy
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation
    • K22 - Law and Economics - - Regulation and Business Law - - - Business and Securities Law
    • N20 - Economic History - - Financial Markets and Institutions - - - General, International, or Comparative
    • N40 - Economic History - - Government, War, Law, International Relations, and Regulation - - - General, International, or Comparative
    • P50 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems - - - General

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