Are financial markets in 'common law' countries more developed than those with a 'civil law' system?

Though the idea that formal institutions of corporate governance matter for economic development is widely accepted, it is still a matter of debate why different systems of corporate governance are dominant in different countries. While the 'law-and-finance-view' asserts that the country&#...

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Bibliographic Details
Published in:Zeitschrift für Wirtschaftspolitik 2007-01, Vol.56 (1), p.3-24
Main Author: Vollmer, Uwe
Format: Article
Language:ger
Subjects:
Capital market
Civil law
Commercial law
Corporate governance
Corporation law
Cross-national analysis
Economic development
Financial regulation
Financial systems
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Summary:Though the idea that formal institutions of corporate governance matter for economic development is widely accepted, it is still a matter of debate why different systems of corporate governance are dominant in different countries. While the 'law-and-finance-view' asserts that the country's affiliation to a certain legal family matters, other authors instead either emphasize the importance of geography, of religion and culture or of the dominance of interest groups for the institutional development of financial markets. This article surveys different views about the causes of financial development and presents empirical evidence on the question whether financial markets are really better developed in 'common-law-countries' than in 'civil-law-countries'. Reprinted by permission of Lucius and Lucius Verlagsgesellschaft
ISSN:0721-3808