Chapter 6

Law and Finance After a Decade of Research* **

Rafael La Portaa, Florencio Lopez-de-Silanesb and Andrei Shleiferc

aTuck School of Business at Dartmouth, USA

bEDHEC Graduate School of Management, France

cHarvard University, USA


In the last dozen years, economists have produced a considerable body of research suggesting that the historical origin of a country’s laws is highly correlated with a broad range of its legal rules and regulations, as well as with economic outcomes. Much of this research has dealt with rules governing investor protection and their effects on financial markets. We summarize this evidence and attempt a unified interpretation. We also address several objections to the empirical claim that legal origins matter. ...

Get Handbook of the Economics of Finance SET:Volumes 2A & 2B now with O’Reilly online learning.

O’Reilly members experience live online training, plus books, videos, and digital content from 200+ publishers.