Izvorni znanstveni članak

https://doi.org/10.1080/1331677X.2018.1432371

Does rule of law support the capital market?

Bogdan , Dima ; Finance Department, Faculty of Economics and Business Administration, West University, Timisoara, Romania
Flavia  Barna ; Finance Department, Faculty of Economics and Business Administration, West University, Timisoara, Romania
Miruna-Lucia  Nachescu orcid.org/0000-0003-1179-0717 ; Finance Department, Faculty of Economics and Business Administration, West University, Timisoara, Romania

Sažetak

By using data for 45 countries, for a time span between 2009 and 2014,
the present paper supports the thesis of a positive and significant
correlation between the rule of law and capital market development.
In order to achieve this goal, the Rule of Law variable reported by
Worldwide Governance Indicators is considered. The relationship
remains robust even if control variables such as other legal system
variables, including protection of minority investors, enforcing
contracts or strength of legal rights of borrowers and lenders as
well as initial levels of market development, economic growth,
market liquidity, domestic credit to private sector and foreign direct
investments are considered.

Ključne riječi

Rule of Law; Market Development; Worldwide Governance Indicators

Hrčak ID:

200683

URI

https://hrcak.srce.hr/200683

Datum izdavanja:

3.12.2018.

Posjeta: 952 *