nep-cis New Economics Papers
on Confederation of Independent States
Issue of 2009‒03‒07
one paper chosen by
Anna Y. Borodina
Perm State University

  1. Investor protection and share prices: Evidence from statutory rules governing variations of shareholders’ class rights in Russia By Muravyev, Alexander

  1. By: Muravyev, Alexander
    Abstract: This paper uses a quasi-experimental framework provided by recent changes in Russian corporate law to study the effect of investor protection on the value of shares. The legal change analyzed involves the empowerment of preferred (non-voting) shareholders to veto unfavorable changes in their class rights. Based on a novel hand-collected dataset of dual class stock companies in Russia and using the difference-in-difference estimator, the study finds a statistically and economically significant effect of improved protection of preferred shareholders on the value of their shares. The result is robust to several changes in the empirical specification.
    Keywords: investor protection; company law; dual class stock; class rights; Russia
    JEL: G38 K22 G30
    Date: 2009–01–22

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