Abstract

http://ssrn.com/abstract=1442224
 
 

References (48)



 
 

Citations (5)



 


 



The Impact of Investor Protection Law on Corporate Policy: Evidence from the Blue Sky Laws


Ashwini K. Agrawal


New York University (NYU) - Department of Finance

August 1, 2011

Journal of Financial Economics (JFE), Forthcoming

Abstract:     
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.

Number of Pages in PDF File: 47

Keywords: Corporate Finance, Corporate Governance, Law, Investor Protection

JEL Classification: G30, G31, G32, G34, G35, G38, G10, G18, G20, G28

Accepted Paper Series


Download This Paper

Date posted: June 28, 2009 ; Last revised: August 31, 2011

Suggested Citation

Agrawal, Ashwini K., The Impact of Investor Protection Law on Corporate Policy: Evidence from the Blue Sky Laws (August 1, 2011). Journal of Financial Economics (JFE), Forthcoming. Available at SSRN: http://ssrn.com/abstract=1442224

Contact Information

Ashwini K. Agrawal (Contact Author)
New York University (NYU) - Department of Finance ( email )
Stern School of Business
44 West 4th Street
New York, NY 10012-1126
United States
Feedback to SSRN


Paper statistics
Abstract Views: 2,425
Downloads: 490
Download Rank: 28,903
References:  48
Citations:  5

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo7 in 0.359 seconds