The "Antidirector Rights Index" Revisited

By Holger Spamann. 2010

689 citations recorded by the source corpus.

The "antidirector rights index" has been used as a measure of shareholder protection in over a hundred articles since it was introduced by La Porta et al. ("Law and Finance." 1998, Journal of Political Economy 106:1113--55). A thorough reexamination of the legal data, however, leads to corrections for thirty-three of the forty-six countries analyzed. The correlation between corrected and original values is only 0.53. Consequently, many empirical results established using the original index may not be replicable with corrected values. In particular, the corrected index fails to support three widely influential claims: that shareholder protection is higher in common than in civil law countries; that shareholder protection predicts stock market size or ownership dispersion; and that weak corporate governance explains the extent of exchange rate depreciation during the Asian financial crisis of 1997--1998. The Author 2009. Published by Oxford University Press [on behalf of The Society for Financial Studies]. All rights reserved. For Permissions, please e-mail: journals.permissions@oxfordjournals.org., Oxford University Press.

Subfields: Accounting, Finance

View Paper: https://www.semanticscholar.org/paper/09c0868bf70d17ab35ba183b90f0338876bbd759

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Citations in the corpus

Socially Responsible Firms (2016, positive): “We proxy the degree of shareholder-orientation embedded in company law by means of the ADRI index as adjusted by Spamann (2010).”
The Effect of IFRS Adoption and Investor Protection on Earnings Quality Around the World (2012, neutral): “However, Spamann (2010) has raised concerns with the construction of one of the most routinely used investor protection measures, „The Antidirector Right Index‟ (ADRI) 1 .”
ESG Shareholder Engagement and Downside Risk (2018, neutral): “Spamann (2009)”
National Culture and Corporate Cash Holdings around the World (2015, methodology): “Specifically, we employ the corrected anti-director rights index of Spamann (2010). To conserve space we do not report the results but they are qualitatively identical to the main results.”
Large Foreign Ownership and Firm-Level Stock Return Volatility in Emerging Markets (2011, neutral): “This index was updated to 2002 by Pagano and Volpin (2005) and to 2005 by Spamann (2010).”
The value of government ownership during the global financial crisis (2017, methodology): “As an alternative measure of investor protection we also used the corrected antidirector rights index (2005 values) from Spamann (2010).”
Doing More with Less: Innovation Input and Output in Family Firms (2016, methodology): “(Spamann, 2010), significantly strengthens the negative association between family control and innovation input (p < .”
Financial development and innovation: Cross-country evidence (2014, methodology): “18 and Spamann (2010). We run the baseline regression separately in these two groups of countries and report the results in the Panel A of Table 6.”
Success in Global Venture Capital Investing: Do Institutional and Cultural Differences Matter? (2014, positive): “First, we subject our analysis to the Spamann (2010) index of shareholder rights and obtain results quite similar to those based on LLSV (1997), (1998) indices.”
Does “Good” Corporate Governance Help in a Crisis? The Impact of Country‐ and Firm‐Level Governance Mechanisms in the European Financial Crisis (2013, methodology): “A higher value means more protection of minority shareholders Spamann, 2010 2002 26 3.68 .99 Creditor right protection Creditor right protection, an index aggregating different creditor rights.”
Social Capital, Investments and External Financing (2015, positive): “Spamann (2010), however, argues that his corrected Antidirector index offers a consistent and easily reproducible measure of shareholder protection.”
Why do some banks contribute more to global systemic risk? (2018, methodology): “Anti-Director Rights Index Anti-Director Rights Index of La Porta et al. (1998) as revised by Djankov et al. (2008) and Spamann (2010).”