Administrative Governance and Financial Development in China: Evidence from Regional Analysis
I. Introduction The law and finance literature emphasizes the importance of legal protection of investors in contributing to financial market development. Investor protection is crucial exactly because in many countries expropriation of minority shareholders and creditors by the controlling shareholders is pervasive. Expropriation can take a variety of forms. In some countries, the insiders may simply steal corporate profits. In some other countries, the insiders may tunnel firm profits through selling the output or assets of the company they control at below market prices. In still other countries, expropriation can take a perfectly legal form such as placing family members in managerial positions or overpaying executives. Extensive expropriation clearly undermines the functioning and development of a financial system.
Julan Du Chenggang Xu
Chinese University of Hong Kong London School of Economics
国际会议
昆明
英文
1-42
2005-07-05（万方平台首次上网日期，不代表论文的发表时间）