Page info: *Author: Mathiesen, H. *Document version: 2.5. *Copyright 1997-2010, ViamInvest. Legal notice.

Table: International corporate governance - Tentative characterizations of legal and empirical state of large firm capital structures in various countries as of 1980-1995:

• Developing countries
• Germany
• Japan
• Anglo-American countries
• Denmark

Introduction: Some of the characterizations can be found in Shleifer and Vishny [1996, pages 49-55]. Precautionary statement: The first version of this table was primarily made out of memory and consequently it lacks adequate references and may contain errors about the actual legal and empirical state of the different institutions. As time passes more references will be added.

Tentative characterizations of legal and empirical state of large firm capital structures in developing countries as of 1980-1995

A) Laws on capital structure.

Legal state: Some restrictions. Some countries require a minimum level of equity to guard against bankruptcy.

Empirical state: The leverage is low compared to Anglo-American firms.

Tentative characterizations of legal and empirical state of large firm capital structures in Germany as of 1980-1995

A) Laws on capital structure.

Legal state: None barriers.

Empirical state: German firms are not geared very much and they retain a large fraction of the earnings.

Tentative characterizations of legal and empirical state of large firm capital structures in Japan as of 1980-1995

A) Laws on capital structure.

Legal state: None barriers.

Empirical state: Japanese firms are much more geared and retain far less earnings than firms from other governance systems, except the Anglo-American.

Tentative characterizations of legal and empirical state of large firm capital structures in Anglo-American countries as of 1980-1995

A) Laws on capital structure.

Legal state: None barriers.

Empirical state: Anglo-American firms are much more geared and retain far less earnings than firms from other governance systems, the only major exception being Japan.

Tentative characterizations of legal and empirical state of large firm capital structures in Denmark as of 1980-1995

A) Laws on capital structure.

Legal state: None barriers.

Empirical state: German firms are not geared very much and they retain a large fraction of the earnings.

- Copyright 1997-2010, ViamInvest. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. Legal notice.