Investor Protection, Optimal Incentives, and Economic Growth

Investor protections and economic growth

Article history: Using objective measures Received 4 January 2008 Received in revised form 3 December 2008 Accepted 8 December 2008 Available online 14 December 2008

Economic Incentives: Options for Environmental Protection

Private Benefits of Control, Growth Opportunities and Investor Protection*

We develop a model to illustrate that controlling shareholders choose the level of investor protection that maximizes their own interests. Controlling shareholders in companies with complicated control structures can easily extract private benefits and are thus reluctant to enhance investor protection which would necessitate increased transparency. In contrast, controlling shareholders in compa...

Investor Protection and Asset Pricing∗

Corporations in most countries are run by controlling shareholders, who have substantially smaller cash flow rights than their control rights in the firm. This separation of ownership and control allows the controlling shareholders to pursue private benefits at the cost of outside minority investors by diverting resources away from the firm and distorting corporate investment and payout policie...

Economic Incentives for Environmental Protection: Integrating Theory and Practice