NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Legal Determinants of External Finance

Rafael La Porta, Florencio Lopez-de-Silane, Andrei Shleifer, Robert W. Vishny

NBER Working Paper No. 5879
Issued in January 1997
NBER Program(s):   CF

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.

download in pdf format
   (1183 K)

email paper

An NBER digest for this paper is available.

A non-technical summary of this paper is available in the NBER Bulletin on Aging and Health. You can sign up to receive the NBER Bulletin on Aging and Health by email.

This paper is available as PDF (1183 K) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w5879

Published: Journal of Finance, Vol. 52, no. 3 (1997): 1131-1150. citation courtesy of

Users who downloaded this paper also downloaded these:
Fazzari, Hubbard, and Petersen w2387 Financing Constraints and Corporate Investment
La Porta, Lopez-de-Silanes, Shleifer, and Vishny w5661 Law and Finance
Shleifer and Vishny w5554 A Survey of Corporate Governance
La Porta, Lopez-de-Silanes, Shleifer, and Vishny w5864 Trust in Large Organizations
Rajan and Zingales w5758 Financial Dependence and Growth
 
Publications
Activities
Meetings
NBER Videos
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us