'Law and Finance' Revisited

Capital Market Regimes and Bank Structure in Europe

“…5 2. Spamann (2008) recomputes the antidirector rights index for 1997 and 2005 and finds only three changes among the countries in our sample: increases from 4 to 5 for Spain, and from 1 to 2 for both Germany and Italy. In Section 5, we report on robustness of our findings to use of Spamann's recomputed index.…”

“…In summary, we feel that the analyses benefit from retaining the use of principal component analysis, because it streamlines and simplifies the empirical analyses, and in cases where individual variables embedded in a principal component have varying effects, it provides a means of ascertaining the net effect. Spamann (2008) found inconsistencies in the LLSV antidirector rights variable, and recoded the values for 46 countries. For our 13-country sample, the correlation between the original LLSV values and the recoded values is 0.64.…”

Inheritance Law and Investment in Family Firms

“…Financial Dependence is drawn from Rajan and Zingales (1998). Investor Protection is defined as the Revised Anti-Director Rights Index of LLSV (1998) in column 1, the Self Dealing Index of Djankov et al (2008) in column 2, the Anti-Director Rights Index of Spamann (2008) in column 3, and the Creditors' Rights Index of Djankov et al (2007) in column 4. Standard errors are corrected for clustering at the country level.…”

“…The independent variables are as follows: Succession is a dummy variable that takes the value of 1 from the year before succession until the end of the sample period and the value of 0 for all the years before; Succession × Investor Protection is the interaction between the Succession dummy variable and Investor Protection; Succession × Inheritance Law is the interaction between the Succession dummy variable and the maximum share that can be given to a child in the presence of a spouse and three children; and Succession × Inheritance Law × Investor Protection is the interaction of all three variables. Investor Protection is defined as the Revised Anti-Director Rights Index of LLSV (1998) in column 1, the Self Dealing Index of Djankov et al (2008) in column 2, the Anti-Director Rights Index of Spamann (2008) in column 3, and the Creditors' Rights Index of Djankov et al (2006) in column 4. Asterisks (*, ** and ***) indicate statistical significance (at the 10%, 5% and 1% level, respectively).…”

Shareholder Protection and Stock Market Development: An Empirical Test of the Legal Origins Hypothesis

“…(1998) suffer from a number of deficiencies and the results it generated cannot necessarily be treated as a reliable basis for constructing a longitudinal index of the kind developed by Pagano and Volpin (2006). See generally Spamann (2006, 2008).…”