Publication

2006 - Division of Research, Harvard Business School, Boston, Massachusetts

Language

English

Word Count

6,750 words, Guess

Page Count

27 pages

Identifiers

Description

Can we assume that the effect of early institutions is persistent over time? Work by La Porta, Lopez de Silanes, Shleifer and Vishny, also known as the "law and finance" literature, implicitly argues that the legal tradition countries inherited or adopted in the far past has an important long-term effect on financial development. They argue financial development is related to the extent countries legally protect shareholders and creditors. Also, they find that countries that use the common law legal system have (on average) better investor protections that most civil law countries.

Subjects

Series Statement

  • Working paper / Division of Research, Harvard Business School -- 06-040

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