Legal determinants of external finance revisited: the inverse relationship between investor protection and societal well-being

David Collison, Stuart Cross, John Ferguson, David Power, Lorna Stevenson

Research output: Contribution to journalArticle

10 Citations (Scopus)
782 Downloads (Pure)

Abstract

This paper investigates relationships between corporate governance traditions and quality of life as measured by a number of widely reported indicators. It provides an empirical analysis of indicators of societal health in developed economies using a classification based on legal traditions. Arguably the most widely cited work in the corporate governance literature has been the collection of papers by La Porta et al. which has shown, inter alia, statistically significant relationships between legal traditions and various proxies for investor protection. We show statistically significant relationships between legal traditions and various proxies for societal health. Our comparative evidence suggests that the interests of investors may not be congruent with the interests of wider society, and that the criteria for judging the effectiveness of approaches to corporate governance should not be restricted to financial metrics.
Original languageEnglish
Pages (from-to)393-410
Number of pages18
JournalJournal of Business Ethics
Volume108
Issue number3
DOIs
Publication statusPublished - Jul 2012

Keywords

  • finance
  • investor protection
  • investment
  • society

Fingerprint Dive into the research topics of 'Legal determinants of external finance revisited: the inverse relationship between investor protection and societal well-being'. Together they form a unique fingerprint.

  • Cite this