Investors' Legal Protection And Corporate Governance

On the basis of the legal protection of investors, the paper looks for mechanisms and channels to increase the degree of protection of shareholders, and confirms the propositions using countries' data. The paper consists of three sections including five chapters. The previous two sections tend to theoretical analysis. It proposes the mechanisms and channels to increase the degree of protection of shareholders from legal settings out of firms and ownership structure in firms. Section 1, including chapter 1 and chapter 2, proposes the dominant theme of the paper.By referring to research background and significance, Chapter 1 deduces the importance of legal protection given investors. The paper regards it as the subject matter studied to explore the theory way to strengthen investor's legal protection.Chapter 2 introduced the definition , meaning and content of investor's legal protection at first, Then analyse to investor's legal protection index quantization, it point out the law and corporate governance have very close connections. The difference of legal origins , will cause the difference of the protecting degree to investors . Section 2,including chapter 3,documents and partly confirms the propositions of investor protection. Investor's legal protection influences the mode selection of a national financial system directly. Financing mode and ownership structure determine the level that the company manages . Thus confirmed the influence mechanism of investor's legal protection in theory .The thesis put forward minority stock holder's legal protection, creditor's legal protection while analysing further, it find by country common law department to in minority stock holder and creditor make good a little wanting than continent law department country protecting. Minority stock holder's legal protection, creditor's legal protection in the thesis has been analysed further, it find minority stock holder and creditor protect and want to do a little better than the country of continent law department in the country of common law department. These indicate even investor's legal protection better, the more scattered ownership is;the higher investors protect the degree, the higher company's value is, the better the performances of enterprises are. Section 3 tests these propositions using a sample of listed firms in China, based on theoretical analysis and put forward the concrete countermeasure of strengthening investor's legal protection.