TY - JOUR
AU1 - Modigliani, Franco
AU2 - Perotti, Enrico
AB - While excessive regulation is an obstacle to the development of financial markets, we argue that lack of basic rules or poorly enforced regulation may explain the relative importance across countries of banking and security markets in financing firms. A selective or arbitrary enforcement transforms legal rules into an exclusionary good; arm's length market exchanges become unreliable. As a result, transactions tend to become intermediated through institutions or concentrated among agents bound by some form of private enforcement. Provision of funding shifts from risk capital to debt, and from markets to institutions with long term relations.
TI - Protection of minority interest and the development of security markets
JF - Managerial and Decision Economics
DO - 10.1002/(SICI)1099-1468(199711/12)18:7/8<519::AID-MDE857>3.0.CO;2-M
DA - 1997-01-01
UR - https://www.deepdyve.com/lp/wiley/protection-of-minority-interest-and-the-development-of-security-I70HNIRF9E
SP - 519
EP - 528
VL - 18
IS - 7‐8
DP - DeepDyve
ER -