How stock market's 'spare tire' keeps economy churning during banking crises

Wednesday, August 5, 2015 - 08:30 in Mathematics & Economics

Stories about corrupt CEOs raiding the corporate piggy bank would appear to be the best argument for shareholder protection laws known as "anti-self-dealing laws." But there's another bonus. A new study finds in countries with strong legislation to prevent fraudulent corporate behavior, banking crises have a less severe impact on firms and the economy in general.

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