Reform of minority shareholder rights: An international perspective

This research investigates recent international reforms of minority shareholder rights (MSRs), and the relationship between those reforms and national legal systems. No previous studies have investigated such changes and their underlying causes; nor have they viewed the phenomena concerned through a dynamic lens. The study uses secondary data from 142 countries over a five-year period (2006-2010). Using growth curve modelling and the panel data method, the study finds that legal systems and law enforcement affect reforms positively. On average, countries¿ MSRs are improving, but this is not consistent across nations. The findings contribute to the current debate on the relationship of law to minority shareholder protection and will assist policy-makers in the area of investor protection reforms. Future research directions are suggested at the end of the paper.