Shareholder and Creditor Protection in Australia - A Leximetric Analysis

Company and Securities Law Journal, Vol. 30, No. 6, pp. 366-390, 2012

U of Melbourne Legal Studies Research Paper No. 619

26 Pages Posted: 18 Oct 2012 Last revised: 10 Jan 2013

See all articles by Helen L. Anderson

Helen L. Anderson

Melbourne Law School

Michelle Anne Welsh

Monash Business School

Ian Ramsay

Melbourne Law School - University of Melbourne

Peter G. Gahan

University of Melbourne - Department of Management and Marketing

Date Written: October 17, 2012

Abstract

This article utilises leximetric analysis, which involves the numerical coding of the strength of legal protections, to show changes in levels of shareholder and creditor protection in Australia for the period 1970-2010. This form of analysis, originally developed by La Porta et al, and subsequently used by many scholars in different legal fields, allows for the production of graphs which illustrate changes to the law, reducing complexities and allowing for comparisons of shareholder and creditor protection. The data shows levels of shareholder protection have increased, most notably against actions of the board of directors rather than against other shareholders. In contrast, levels of creditor protection have been relatively stable. The article explores how and why these developments in shareholder and creditor protection have occurred. The research also identifies that for most of the 40 year period of study, there was a positive correlation between shareholder and creditor protection. However, this is no longer the case for recent years and possible explanations for this finding are identified.

Suggested Citation

Anderson, Helen L. and Welsh, Michelle Anne and Ramsay, Ian and Gahan, Peter G., Shareholder and Creditor Protection in Australia - A Leximetric Analysis (October 17, 2012). Company and Securities Law Journal, Vol. 30, No. 6, pp. 366-390, 2012; U of Melbourne Legal Studies Research Paper No. 619. Available at SSRN: https://ssrn.com/abstract=2162859

Helen L. Anderson

Melbourne Law School ( email )

University of Melbourne
Melbourne, 3010
Australia
+61 3 90355467 (Phone)

Michelle Anne Welsh

Monash Business School ( email )

Wellington Road
Clayton, Victoria 3168
Australia

Ian Ramsay (Contact Author)

Melbourne Law School - University of Melbourne ( email )

University Square
185 Pelham Street, Carlton
Victoria, Victoria 3010
Australia
+61 3 8344 5332 (Phone)

HOME PAGE: http://law.unimelb.edu.au/about/staff/ian-ramsay

Peter G. Gahan

University of Melbourne - Department of Management and Marketing ( email )

5th Floor Babel Building
Melbourne, Victoria 3010
Australia
+61390359740 (Phone)
+61393494293 (Fax)

HOME PAGE: http://www.managementmarketing.unimelb.edu.au/who/staff.cfm?StaffId=241

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