Why Does the Law Matter? Investor Protection and Its Effects on Investment, Finance, and Growth

• 成果类型: Article
• 署名作者: McLean, R. David; Zhang, Tianyu; Zhao, Mengxin
• 署名单位: Chinese University of Hong Kong
• 刊物名称: JOURNAL OF FINANCE
• ISSN/ISSBN: 0022-1082
• DOI: 10.1111/j.1540-6261.2011.01713.x
• 发表日期: 2012
• 页码: 313-350
• 关键词: cash flow sensitivities; international evidence; stock markets; equity; issues; determinants; constraints; holdings

摘要

Investor protection is associated with greater investment sensitivity to q and lower investment sensitivity to cash flow. Finance plays a role in causing these effects; in countries with strong investor protection, external finance increases more strongly with q, and declines more strongly with cash flow. We further find that q and cash flow sensitivities are associated with ex post investment efficiency; investment predicts growth and profits more strongly in countries with greater q sensitivities and lower cash flow sensitivities. The paper's findings are broadly consistent with investor protection promoting accurate share prices, reducing financial constraints, and encouraging efficient investment.