Investor Protection and Equity Markets
- Topics:
- Equity
- Tags:
- Entrepreneur,
- Entrepreneurship,
- Equity,
- Finance,
- Financial Accounting,
- Management,
- National Bureau Of Economic Research
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Overview: This report presents 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). It examines 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.
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Format: PDF | Size: 128KB | Date: Oct 2000 | Pages: 33




