Tag: Corporate Governance

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); ...

Equity market reaction to events surrounding reforms in the minority shareholder protection

My 2012 thesis investigated the equity market reaction to events surrounding reforms in the quality and levels of minority shareholder protection, in particular country jurisdictions. The analysis was carried out using one minority shareholder legal protection reform that was enacted in Saudi Arabia and two reforms enacted in Tunisia from late 2007 until early 2009. ...

Introduction into MENA Financial Markets and Institutions

There are significant differences in the levels of financial sector development among the countries throughout the MENA region. However, some broad generalisations can be made about its overall financial system. Despite the dramatic growth in financial institutions, the region’s financial sector is highly dominated by the banking system and plays a small role in 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 ...

Demographic Characteristics of MENA Region

Historically, the MENA countries have been considered to include some of the world’s fastest growing populations (Fahimi and Kent, 2007).  However, in the last three decades the region has experienced declines in its demographic growth rate. This is mainly due to the fall in fertility rates that started in North Africa and later spread to ...

Investor Protection and Dividend Policy

LLSV (2000b) show that countries with strong shareholder rights are able to force firms to disgorge cash and pay higher dividends. They find that dividend policies vary across legal regimes in ways consistent with a particular version of the agency theory of dividends. Specifically, firms in common law countries, where investor protection is typically better, ...

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 ...

Shareholders’ Protection and the Ownership Pattern

The image of the public corporation as a firm owned by dispersed shareholders, while control is concentrated in the hands of management, as suggested by Berle and Means (1932), has been shown to be the exception rather than the rule in most countries around the world (La Porta et al., 1999; Coffee, 2001). Different studies ...

Shareholders Protection and Stock Market Development

The work of the four financial economists ‘LLSV’ (1997 and 1998) along with subsequent studies (Demirguc-Kunt and Levine, 2001; Johnson et al., 2000a; Wurgler, 2000; and LLSV 1999; 2000 and 2002) demonstrate that better legal ‘investor protection’ is associated with increased breadth and depth of capital markets, a faster pace of new security issues, and ...

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, ...