In the last decades, we have been faced with a rapid development and sophistication of the investing methods that investors have at their disposal. The emergence of new micro and macroeconomic risks that have affected the markets stability, impose the re-analyzing of the prudential regulations in the field of investors’ rights protection. The present paper aims to present and analyze the necessity of investors’ rights protection in the context of reducing the informational asymmetry on the financial markets and to propose some ways of solving litigations that can appear in the international investing process. The approach, through the research method, is a dual one, offering the connection between quantitative and qualitative arguments. We show the need for investors’ rights protection through an adequate transparency of the financial information and we present solutions that should be adopted in this field by the regulatory and supervising authorities. We also identify and analyze the main risks that limit the foreign investors’ rights and offer ways of protection that can be used in the case of international litigation. The analysis done shows that the investors’ rights protection level has a significant impact on the development and stability level on the global market.
Abiad, A.& Mody, A. (2005). Financial Reform: What Shakes It? What Shapes It?. American Economic Review, 95(1). 66-88.
Amartya, S. (2009). Capitalism Beyond the Crisis, The New York Rewiew of Books.
Beck, T., Levine, R.& Loayza, N. (2000). Finance and the sources of growth. Journal of Financial Economic, 58, 261-300.
Beck, T., Demirguc-Kunt, A.& Levine, R. (2003a). Law, Endowments, and Finance. Journal of Financial Economics, 70, 137–81.
Beck, T., Demirguc-Kunt, A. & Levine, R. (2003b). Law and Finance. Why Does Legal Origin Matter? Journal of Comparative Ecoomics, 31, 653–75.
Berkowitz, D., Pistor, K. & Richard, J.F. (2003). Economic Development, Legality and the Transplant Effect, European Economic Review, 47(1), 165-195.
Bhattacharya, U. & Daouk, H. (2002). The world price of insider trading. Journal of Finance, 57, 75-108.
Braun, M. & Raddatz, C. (2004). Trade liberalization and the politics of financial development. Working Papers, 04-3, Federal Reserve Bank of Boston.
Bossone, B, Mahajan, S & Zahir, F. (2003). Financial infrastructure, group interests, and capital accumulation: Theory, evidence, and policy, IMF Working Paper WP/03/24, January.
Ciotlo?, M. (2012). Ordinea în cetate – prioritate a contemporaneit??ii, (PhD Thesis, Bucure?ti, Romania).
Claessens, S.& Laeven, L., (2003). What drives bank competition? some international evidence, Policy Research Working Paper Series 3113, The World Bank.
Coulibaly, B. (2009). Effects of financial autarky and integration: The case of South Africa embargo, Journal of International Money and Finance.
Cristea, H. (2002). Standardele interna?ionale de contabilitate ?i instrumentele financiare, Pie?e de capital: lucr?ri ?tiin?ifice comunicate la sesiunea jubiliar? „10 ani de existen?? a SIF Banat-Cri?ana”: Ed. Mirton, Timi?oara.
Djankov, S., Glaeser, E., La Porta, R., Lopez-de-Silanes, F.& Shleifer, A. (2003). The new comparative economics, Journal of Comparative Economics, 31(4), 595-619.
Francis G., Khurana, I.& Pereira, R. (2001). Investor Protection Laws, Accounting and Auditing Around the World. Social Science Research Network.
Goran, V. (2005). Impact of foreign direct investment on Croatian manufacturing exports, Financial Theory and Practice, Institute of Public Finance, vol. 29(2), 131-158.
Hansmann, H.& Kraakman, R. (2000).The Essential Role of Organizational Law, Yale Law Journal, 387-440.
Jain, P. K. (2005). Financial market design and the equity premium: Electronic versus floor trading. Journal of Finance, 60, 2955-2985.
Jensen, M.& Meckling, W. (1976). Theory of the firm: managerial behavior, agency costs, and ownership structure. Journal of Financial Economics, 3, 305-360.
Johnson, S., Boone, P., Breach, A.& Friedman, E. (2000). Corporate governance in the Asian financial crisis, Journal of Financial Economics, 58, 141-186
Koubi, V. (2008). On the determinants of financial development and stock returns. Journal of Money, Investment and Banking, Issue 1.
La Porta, R., Lopez-de-Silanes, F., Shleifer, A.& Vishny, R. W. (1997). Legal determinants of external finance. Journal of Finance, 52, 1131-1150.
La Porta, R., Lopez-de-Silanes, F., Shleifer, A.& Vishny, R. W. (1998). Law and finance. Journal of Political Economy, 106, 1113-1155.
La Porta, R., Lopez-de-Silanes, F., Shleifer, A.& Vishny, R. W. (1999a). The quality of government. Journal of Law, Economics and Organization, 15, 222-279.
La Porta, R., Lopez-de-Silanes, F., Shleifer, A.& Vishny, R.W. (1999b). Investor protection and corporate valuation. NBER Working Paper 7403. National Bureau of Economic Research, Cambridge, MA.
La Porta, R., Lopez-de-Silanes, F., Shleifer, A.& Vishny, R.W. (2000). Agency problems and dividend policies around the world. Journal of Finance 55, 1-33.
La Porta, R., Lopez-de-Silanes, F., Shleifer, A.& Vishny, R. W. (2008), “The economic Consequences of Legal Origins”, Journal of Economic Literature, 46(2).
Leuz C., Nanda D.& Wysocki P.D. (2003), Earnings Management and Investor Protection: An International Comparison, Journal of Financial Economics, 69, no. 3, 505-27.
Leuz, C., Lins, K.& Warnock, F. (2009). Do Foreigners Invest Less in Poorly Governed Firms?, Review of Financial Studies, Society for Financial Studies, vol. 22(8), 3245-3285.
Levine, R. (1997). Financial development and economic growth: Views and agenda. Journal of Economic Literature, 35, 688-726.
Obstfeld, M. (1986). Rational and self-fulfilling balance payments crises, American Economic Review, 76.
Pagano, M. (1993). The floatation of companies and the stock market: A coordination failure model. European Economic Review, 37, 1101-1125.
Popescu, Gh., Popescu, V.A., Popescu, C.R. (2006), Contabilitatea conform? cu Directivele Europene, Bucuresti: Editura Gestiunea.
Schmukler, S. (2004). Whiter Latin American Capital Markets?, Washington DC : World Bank.
Stulz, R. (2005). The Limits of Financial Globalization, NBER Working Papers 11070, National Bureau of Economic Research, Inc.
Copyright: © 2014 The Author(s)
Published by Human Resource Management Academic Research Society (www.hrmars.com)
This article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this license may be seen at: http://creativecommons.org/licences/by/4.0/legalcode
