Law or finance: evidence from Finland

Arbeitspapier

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.

Object Details

• ISBN: 951-686-777-4
• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Bank of Finland Discussion Papers ; No. 8/2002

Classification and Topics

• Classification: Wirtschaft ; Monetary Policy, Central Banking, and the Supply of Money and Credit: General ; Investment Banking; Venture Capital; Brokerage; Ratings and Ratings Agencies ; Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
• Subject: corporate finance ; financial intermediation ; corporate governance

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Hyytinen, Ari ; Kuosa, Iikka ; Takalo, Tuomas
• Event: Veröffentlichung
• (who): Bank of Finland
• (where): Helsinki
• (when): 2002

Further information

• Handle: http://hdl.handle.net/10419/211912
• Last update: 10.03.2025, 11:43 AM CET