Stock return, risk, and legal environment around the world

摘要: Abstract This paper investigates how the legal environment in a country influences performance and risk of stock across countries at different developmental stages various rules jurisdiction. Using data 4916 stocks from 37 countries, our empirical findings confirm that equities with English common law origin have higher premiums than those civil particularly for French/Spanish code. The indicators representing high efficiency system, low corruption, strong protection investors' rights, reliable political are associated performance. elements procedural formalism, however, differing effects on volatility return.