TY  - JOUR
AU  - Shleifer,Andrei
AU  - Wolfenson,Daniel
TI  - Investor Protection and Equity Markets
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 7974
PY  - 2000
Y2  - October 2000
UR  - http://www.nber.org/papers/w7974
L1  - http://www.nber.org/papers/w7974.pdf
N1  - Author contact info:
Andrei Shleifer
Department of Economics
Harvard University
Littauer Center M-9
Cambridge, MA 02138
Tel: 617/495-5046
Fax: 617/496-1708
E-Mail: ashleifer@harvard.edu
AB  - We present a simple model of an entrepreneur going public in an environment with poor legal protection of outside shareholders. The model incorporates elements of Becker's (1968)  crime and punishment' framework into a corporate finance environment of Jensen and Meckling (1976). We examine the entrepreneur's decision and the market equilibrium. The model is consistent with a number of empirical regularities concerning the relationship between investor protection and corporate finance.
ER  -