A copy of this work was available on the public web and has been preserved in the Wayback Machine. The capture dates from 2005; you can also visit the original URL.
The file type is
Morck, Yeung and Yu (2000) show that R 2 and other measures of stock market synchronicity are higher in countries with less developed financial systems and poorer corporate governance. We develop a model that explains these results and generates additional testable hypotheses. The model shows how control rights and information affect the division of risk bearing between inside managers and outside investors. Insiders capture part of the firm's operating cash flows. The limits to capture aredoi:10.2139/ssrn.531263 fatcat:67wsybyuajcvla673txajjjeze