The internationalization of securities markets causes the effects of domestic securities regulations systems to be externalized to foreign markets. Securities regulation regimes of interlinked markets thus become relevant to one another. By implementing 2x2 game models and insights from...

This paper argues that the globalization of stock markets -- manifested inter alia by listing and trading on foreign stock exchanges -- also entails legal interdependence, particularly in what concerns securities regulation and corporate governance regimes. When securities transactions are...

This article advances a new framework for investigating a simple yet fundamental question: In what ways does the law on the books reflect cultural values? We analyze relations between indices of investors' legal rights - as coded by La Porta et al. (LLSV) - and national cultural profiles. These...

This study identifies how country differences on a key cultural dimension - egalitarianism - influence the direction of different types of international investment flows. A society's cultural orientation toward egalitarianism is manifested by intolerance for abuses of market and political power...

This study investigates how directors make decisions that involve shareholders and other stakeholders. Using vignettes derived from seminal court cases, we construct an index of directors' shareholderism as a general orientation on this issue. In a survey of the entire population of directors...

This study examines how directors make decisions that involve shareholders and other stakeholders. Using vignettes derived from seminal court cases, we construct an index of directors' shareholderism as a general orientation on this issue. In a survey of the entire population of directors and...

We use a US Supreme Court case, Morrison v. National Australia Bank (2010), as a natural experiment to test the legal bonding hypothesis. By decreasing the potential liability of US-listed foreign firms, particularly due to class action lawsuits, Morrison arguably eroded their legal bonding to...

This paper explores the relations between law and social norms and in particular, the case of legal compliance in groups. Specifically, this paper argues that the rule of law is a social norm interfacing the formal institutions of society with the informal ones. As social institutions, norms...

This study presents evidence about relations between national culture and social institutions. We operationalize culture with data on cultural dimensions for some 50 nations adopted from cross-cultural psychology and generate testable hypotheses about three basic social norms of governance: the...