Countries with strong shareholder protection tend to have more valuable stock markets and more companies listed on stock exchanges per capita than countries with weak protection.

Question

Quizplus · Accepted Answer

Studies have shown that strong shareholder protection is positively correlated with a country's stock market value and the number of companies listed on its stock exchange per capita. This is because investors are more willing to invest in companies in countries where their shareholder rights are protected and they can hold management accountable.

Countries with Strong Shareholder Protection Tend to Have More Valuable