Law and Finance: Inaccurate, Incomplete, and Important
Why this work is in the frame
A frame that forgets how it found something cannot be audited. These are the routes that admitted this work.
Bibliographic record
Abstract
La Porta, Lopez-de-Silanes, Shleifer and Vishny’s (LLSV) purported demonstration in Law and Finance (1998) of a correlation between the legal origins of a country and its stock market development and ownership dispersion, mediated through the protection of minority shareholders as against directors, has been subjected to enough further, careful analysis that we can see both the inaccuracies of their views, but also the importance of their research. In this Essay, we suggest that economic sociology has much to add to the understanding of the implications derived from raw facts of ownership patterns within countries. There are provocative hints that companies with controlling shareholders can actually outperform companies with dispersed shareholders, contingent on the nature of the owners (family, state, bank, parent company, etc.), the type of industrial sector, the stage of the firm’s life cycle, and the other institutional arrangements in the country. Putting ownership patterns on the agenda of academic inquiry was clearly an important contribution by LLSV. Understanding what those patterns imply about firm performance, within different institutional arrangements and complementarities, is yet to be fully addressed, either in their work or in comparative corporate governance generally.We also suggest that it is important to understand the contributions of legal origins to positive economic measures of a country’s health, fully conceived. Financial measures alone, such as measures of stock market capitalization per GDP, do not suffice to provide that understanding. In light of the collapse of innovative financialization over the past year, and the resulting global recession, we should re-examine LLSV’s fundamental conceptions – and perhaps misconceptions – of the value of stock market capitalization per se as a measure of healthy economics.
Fetched live from OpenAlex and de-inverted. Abstracts are not stored in this database: the inverted indexes are 8.6 GB of the frame’s 9.3 GB of text, and the host has 13 GB free.
Full frame distilled prediction
Teacher imitationNot calibrated prevalence, not ground truth. Human validation pending. Learned from the 10,348 direct Codex labels and 10,348 direct Gemma labels. Candidate is the union of thresholded teacher heads; consensus is their intersection. These outputs are machine_predicted_unvalidated and are not human labels or direct frontier model labels.
Codex and Gemma teacher scores by category
| Category | Codex | Gemma |
|---|---|---|
| Metaresearch | 0.000 | 0.000 |
| Meta-epidemiology (narrow) | 0.000 | 0.000 |
| Meta-epidemiology (broad) | 0.000 | 0.000 |
| Bibliometrics | 0.000 | 0.000 |
| Science and technology studies | 0.000 | 0.000 |
| Scholarly communication | 0.000 | 0.002 |
| Open science | 0.000 | 0.000 |
| Research integrity | 0.000 | 0.000 |
| Insufficient payload (model declined to judge) | 0.000 | 0.000 |
Machine scores (provisional)
The two teacher heads of the student model, read on this work. A score orders the frame for review; it never asserts a category, and the validation status ships verbatim with every row.
Baseline scores from an immature model (maturity gate not passed, 7 training rounds). Scores rank; they never assert a category.
score_only:v0-immature-baseline · verbatim from the scoring run: score_only means the number may rank works, and no category label ships from it