Publications
Publications
- Business History
Does the Law and Finance Hypothesis Pass the Test of History?
By: Aldo Musacchio and John D. Turner
Abstract
For the body of work known as the law and finance literature, the development of
financial markets and the concentration of ownership across countries is to a large
extent the consequence of the legal system nations created or inherited decades or
hundreds of years ago. Despite the seemingly historical nature of this explanation, most
of the body of work supporting the law and finance hypothesis has been ahistorical. This paper summarises the business history literature and provides evidence on investor
protection and financial development over the long run that challenges the main tenets
of the law and finance literature.
Keywords
Finance; Business History; Financial Markets; Financial History; Business and Shareholder Relations; Law; Financial Services Industry; United States; United Kingdom; Brazil
Citation
Musacchio, Aldo, and John D. Turner. "Does the Law and Finance Hypothesis Pass the Test of History?" Special Issue on Law and Finance: A Business History Perspective. Business History 55, no. 4 (June 2013): 524–542.