Investor Protection
Essay question: How important is the level of investor protection for financial market development and development of the real economy?
Required Paper: La Porta, Rafael, Florencio Lopez-de-Silanes, Andrei Shleifer, and Robert W. Vishny, “Investor Protection and Corporate Governance,” Journal of Financial Economics, Vol. 58, No. 1: 3-27, 2000. http://www.sciencedirect.com.ezproxy1.hw.ac.uk/science/journal/0304405X/58/1-2
Questions we will discuss in class: Why is investor protection necessary? Who needs protection? What methods are used to protect investors from expropriation of profits? How does the legal system affect the level of investor protection? How does investor protection affect the value of the companies on financial markets?