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Investor Protection and Equity Markets / Andrei Shleifer, Daniel Wolfenson.

NBER Working papers Available online

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Format:
Book
Author/Creator:
Shleifer, Andrei.
Contributor:
National Bureau of Economic Research.
Wolfenson, Daniel.
Series:
Working Paper Series (National Bureau of Economic Research) no. w7974.
NBER working paper series no. w7974
Language:
English
Physical Description:
1 online resource: illustrations (black and white);
Place of Publication:
Cambridge, Mass. National Bureau of Economic Research 2000.
Summary:
We present a simple model of an entrepreneur going public in an environment 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.
Notes:
Print version record
October 2000.

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