minority shareholders. We provide evidence and a model that explains propping. In particular, we suggest that issuing debt can …

tradeoff theory). Alternatively, firms in such countries are less likely to be managed for the benefit of shareholders because … the poor protection of investor rights makes it easier for management and controlling shareholders to appropriate … assets across countries. However, the fact that a dollar of cash is worth less than $0.65 to the minority shareholders of …

suggest that there is a common element to the explanations of these differences, namely how well investors, both shareholders … and creditors, are protected by law from expropriation by the managers and controlling shareholders of firms. We describe …

We present a model of the effects of legal protection of minority shareholders and of cash flow ownership by a … minority shareholders, and weaker evidence of the benefits of higher cash flow ownership by controlling shareholders for …

development around the world today (La Porta et al, 1998, 1999 and passim). This paper examines the persistence of the effects of … variation observed in financial development around the world today is likely a product of events of the twentieth century rather …

invest more in internal governance. Our evidence supports the view that minority shareholders of a typical foreign firm would …

transparency ratings for a large sample of firms from around the world, we find evidence consistent with this prediction …

will converge to the growth rate of the world technology frontier, and that all other countries will have a strictly lower … regression is not significantly different from zero. These findings are robust to alternative conditioning sets, estimation …