Work

The Law and Economics of Self-Dealing December 1st, 2005

Year: 2005

Type: preprint

Abstract: We present a new measure of legal protection of minority shareholders against expropriation by corporate insiders: the anti-self-dealing index. Assembled with the help of Lex Mundi law firms, the index is calculated for 72 countries based on legal rules prevailing in 2003, and focuses on private enforcement mechanisms, such as disclosure, approval, and litigation, governing a specific self-dealing transaction. This theoretically-grounded index predicts a variety of stock market outcomes, and generally works better than the commonly used index of anti-director rights.

Source: SSRN Electronic Journal

Authors: Simeon Djankov, Rafael La Porta, Florencio López‐de‐Silanes, Andrei Shleifer

Language: English

Topic: Corporate Finance and Governance

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Peace, justice, and strong institutions

Open Access status: green

OpenAlex ID: W2182343745

Cites: 21

Cited by: 33

Related to: 10