Law or finance: evidence from Finland
Hyytinen, Ari; Kuosa, Iikka; Takalo, Tuomas (22.05.2002)
Numero
8/2002Julkaisija
Suomen Pankki
2002
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:bof-20140807417Tiivistelmä
Although it is widely acknowledged that the benefits of corporate governance reform could be substantial, systematic evidence on such reforms is scant.We both document and evaluate a contemporary corporate governance reform by constructing 18 measures of shareholder and creditor protection for Finland for the period 1980-2000.The measures reveal that shareholder protection has been strengthened whereas creditor protection has been weakened.We also demonstrate how the reform is consistent with a reorganisation of the Finnish financial market in which a bank-centred financial system shifted from relationship-based debt finance towards increasing dominance by the stock market.We find evidence that the development of shareholder protection has been a driver of the reorganisation, whereas the changes in creditor protection have mirrored market developments. Key words: corporate finance, financial intermediation, corporate governance JEL classification numbers: E50, G2 1, G24, G32
Julkaisuhuomautus
Published in European Journal of Law and Economics, 16, 2003: 59-89