The impact of investor protection law on corporate policy and performance: evidence from the blue sky laws
Agrawal, A. K.
(2013).
The impact of investor protection law on corporate policy and performance: evidence from the blue sky laws.
Journal of Financial Economics,
107(2), 417-435.
https://doi.org/10.1016/j.jfineco.2012.08.019
Recent studies have debated the impact of investor protection law on corporate behavior and value. I exploit the staggered passage of state securities fraud statutes (“blue sky laws”) in the United States to estimate the causal effects of investor protection law on firm financing decisions and investment activity. The statutes induce firms to increase dividends, issue equity, and grow in size. The laws also facilitate improvements in operating performance and market valuations. Overall, the evidence is strongly supportive of theoretical models that predict investor protection law has a significant impact on corporate policy and performance.
| Item Type | Article |
|---|---|
| Copyright holders | © 2012 Elsevier B.V |
| Departments | LSE > Academic Departments > Finance |
| DOI | 10.1016/j.jfineco.2012.08.019 |
| Date Deposited | 01 Mar 2017 |
| Acceptance Date | 16 Aug 2011 |
| URI | https://researchonline.lse.ac.uk/id/eprint/69607 |
Explore Further
- G30 - General
- G31 - Capital Budgeting; Fixed Investment and Inventory Studies
- G32 - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure
- G34 - Mergers; Acquisitions; Restructuring; Corporate Governance
- K22 - Corporation and Securities Law
- http://www.lse.ac.uk/finance/people/faculty/Agrawal?from_serp=1 (Author)
- https://www.scopus.com/pages/publications/84873111564 (Scopus publication)
- https://www.journals.elsevier.com/journal-of-finan... (Official URL)