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

9 Citations (Scopus)

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.
LanguageEnglish
Pages393-410
Number of pages18
JournalJournal of Business Ethics
Volume108
Issue number3
DOIs
Publication statusPublished - Jul 2012

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investor
corporate governance
finance
well-being
determinants
health
quality of life
economy
Corporate governance
Well-being
External finance
Investor protection
Legal traditions
Finance
Investors
evidence
Corporate Governance
Health
Empirical analysis
Quality of life

Keywords

  • finance
  • investor protection
  • investment
  • society

Cite this

Collison, David ; Cross, Stuart ; Ferguson, John ; Power, David ; Stevenson, Lorna. / Legal determinants of external finance revisited : the inverse relationship between investor protection and societal well-being. In: Journal of Business Ethics. 2012 ; Vol. 108, No. 3. pp. 393-410.
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Legal determinants of external finance revisited : the inverse relationship between investor protection and societal well-being. / Collison, David; Cross, Stuart; Ferguson, John; Power, David ; Stevenson, Lorna.

In: Journal of Business Ethics, Vol. 108, No. 3, 07.2012, p. 393-410.

Research output: Contribution to journalArticle

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