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Legal Determinants of External Finance

Florencio López‐de‐Silanes, Andrei Shleifer, Robert W. Vishny

The Journal of Finance · 1997 · 10,056 citationsOpen access

doi.org/10.1111/j.1540-6261.1997.tb02727.xFree full text

Abstract

ABSTRACT Using a sample of 49 countries, we show that countries with poorer investor protections, measured by both the character of legal rules and the quality of law enforcement, have smaller and narrower capital markets. These findings apply to both equity and debt markets. In particular, French civil law countries have both the weakest investor protections and the least developed capital markets, especially as compared to common law countries.

Cite this paper

PORTA, R. L., López‐de‐Silanes, F., Shleifer, A., & Vishny, R. W. (1997). Legal determinants of external finance. The Journal of Finance, 52(3), 1131–1150. https://doi.org/10.1111/j.1540-6261.1997.tb02727.x

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