Tag: Business Law

MENA Businesses & Human Rights: How should we move forward?

Nine years after the so-called “Arab Spring” protests swept the Middle East and North Africa, with mostly young people calling for the end of autocracy and respect for their human rights, civil and human rights are more at risk than ever. Governments across the region engage in vicious, factional wars for control (Syria, Yemen, Libya); ...

Empirical results of the relation between the minority shareholders protection and equity markets

My thesis examined empirically whether higher levels of legal protection for minority shareholders are associated with equity markets which were larger, more active, and faster in issuing new securities, that is to say equity market development. Using a sample of 16 MENA countries over the period between 2005-2009, panel data analyses as well as the ...

MENA’s Economic Background

Despite the MENA region being rich in oil, gas and other natural resources, it still falls far behind other developing regions, especially Latin America and South East Asia, in terms of economic development (Wilson and Munawar, 1995). During the past 25 years, the MENA has shown an overall weakness in economic performance, being less economically ...

Defining the MENA region

There is no standard definition of the MENA region, however, as the name indicates, the term compromises two main areas. The first part of the term, Middle East, creates a problem of definition as the geographical area does not have precisely defined borders. The Middle East was first used as term by the British in ...

Shareholder Protection and Corporate Value

Empirical analyses, such as that of Brockman and Chung (2003), Caprio et al., (2007), Claessens and Fan (2002), Johnson et al. (2000a) and La Porta et al. (2002) suggest that the legal protection of shareholders’ rights influences the valuation of firms. This is important for this thesis as the size of financial markets which is ...

The Financial Markets Development and Economic Growth

The literature argues that financial markets are the fundamental channel through which most governments attempt to regulate their economies’ performance including combating inflation, promoting economic growth in the output of goods and services, and providing employment (Merton, 1990). It has been noted that the most successful economies have well developed financial markets (Levine and Zervos, ...

Legal System Strategies against Self-Dealing

It is appropriate to note that self-dealing transactions traditionally fall within the scope of insider’s fiduciary duty of loyalty (Enriques, 2000, p. 5), that is, the duty to subordinate their own interests to those of the corporation whenever a conflict arises (Henn and Alexander, 1983). Often, the rationale for the regulation of self-dealing transactions is ...

Legal origin and Shareholders protection

In the past decade, LLSV spearheaded a rapidly evolving mass of literature emphasising the part played by legal institutions in moulding the national pattern of financial management and economic growth. What the literature argued was a core concept for corporate governance was the protection of investor rights against the expropriation by insiders and legal enforcement ...

Law and Corporate Governance

The crucial role played by the law in corporate governance and then economic efficiency was understood by early legal scholars (Cheffins, 2001), however, historically, economists have been sceptical of the claim that in general social factors such as law, politics and culture are fundamental to companies and economic growth (Fligstein and Choo, 2005). Some even ...