Investor Protection and Corporate Valuation
Posted: 29 Nov 2003
There are 4 versions of this paper
Investor Protection and Corporate Governance
Number of pages: 40
Posted: 27 Jul 2000
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15,797
Investor Protection and Corporate Valuation
NBER Working Paper No. w7403
Number of pages: 44
Posted: 26 Jul 2000
Last Revised: 26 Mar 2021
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809
Abstract
We present a model of the effects of legal protection of minority shareholders and of cash-flow ownership by a controlling shareholder on the valuation of firms. We then test this model using a sample of 539 large firms from 27 wealthy economies. Consistent with the model, we find evidence of higher valuation of firms in countries with better protection of minority shareholders and in firms with higher cash-flow ownership by the controlling shareholder.
Suggested Citation: Suggested Citation
La Porta, Rafael and Lopez de Silanes, Florencio and Shleifer, Andrei and Vishny, Robert W., Investor Protection and Corporate Valuation. Available at SSRN: https://ssrn.com/abstract=313475
Robert W. Vishny
University of Chicago - Booth School of Business ( email )
5807 S. Woodlawn Avenue
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United States
312-702-2522 (Phone)
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