Legal perception and finance: when the perception matters more than the actual law

online resource

posted on 2022-06-16, 11:33 authored by Gerhard SchnyderGerhard Schnyder, Anna GrosmanAnna Grosman, Kun FuKun Fu, Mathias Siems, Ruth Aguilera

How people perceive the quality of the law can affect companies in many ways. Gerhard Schnyder, Anna Grosman, Kun Fu, Mathias Siems, and Ruth V. Aguilera explore the underdeveloped role of legal perceptions in initial public offerings (IPOs), when companies list their shares in a stock exchange. They find that what drives IPO valuation is how shareholder protection laws are perceived, rather than the actual quality of the legal protection.

History

School

Loughborough University London

Published in

LSE Business Review

Publisher

LSE (London School of Economics and Political Science)

Version

VoR (Version of Record)

Rights holder

Publisher statement

This is an Open Access Article. It is published by LSE under the Creative Commons Attribution-NonCommercial-NoDerivs 2.0 UK: England & Wales Licence (CC BY-NC-ND 2.0 UK). Full details of this licence are available at: https://creativecommons.org/licenses/by-nc-nd/2.0/uk/

Publication date

2022-01-04

Copyright date

2022

Publisher version

https://blogs.lse.ac.uk/businessreview/2022/01/04/legal-perception-and-finance-when-the-perception-matters-more-than-the-actual-law/

Language

en

Depositor

Dr Anna Grosman. Deposit date: 13 June 2022