Globalisation is benefiting shareholders as it is becoming increasingly easy to invest their money in companies all over the world. For instance, at the end of 2020, 56.3% of shares in British companies were held by foreign investors - a new record.
At the same time, the Chinese government is nationalising its e-learning sector, drying up a market into which $10.5 billion was poured in 2020.
The combination of these events leads to the question of how far investors are protected when investing their money. Therefore, this research paper aims to answer the research question: With global investors searching for higher returns in international markets, what is the role of investor protection in developing international financial markets and real economies?
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Discussion
- Conclusion
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This research paper explores the role of investor protection in developing international financial markets and real economies, particularly in light of increasing global investment activity. It examines the impact of investor protection on investor confidence and capital market growth.
- The importance of investor protection in fostering confidence and growth in capital markets
- The role of legal regulations in investor protection, particularly regarding internal and external mechanisms
- The effectiveness of different legal systems, such as common law and civil law, in safeguarding investors
- The impact of information asymmetry on investor protection and potential conflicts of interest
- The need for governments to continually evaluate and adjust investor protection measures to address evolving market trends and ensure long-term capital market growth
Zusammenfassung der Kapitel (Chapter Summaries)
- Introduction: This chapter introduces the research question and provides context for the study, highlighting the increasing globalisation of investment and its impact on the role of investor protection.
- Discussion: This chapter delves into the importance of investor protection for capital market growth, focusing on the role of investor confidence and the impact of expropriation events. It explores different mechanisms for investor protection, both internal and external, and examines the effectiveness of different legal systems in safeguarding investors.
Schlüsselwörter (Keywords)
Investor protection, international financial markets, capital market development, globalisation, legal regulations, common law, civil law, information asymmetry, investor confidence, market growth, expropriation, government intervention.
Frequently Asked Questions
What is the main focus of this research paper on investor protection?
The paper explores the role of investor protection in developing international financial markets and real economies, focusing on how legal frameworks influence investor confidence and market growth.
How does globalization affect shareholders' investment choices?
Globalization makes it easier for investors to put their money into companies worldwide, as seen by the record-high percentage of foreign-held shares in British companies in 2020.
What are the differences between common law and civil law regarding investor protection?
The research examines the effectiveness of different legal systems, noting that common law and civil law provide varying levels of safeguards and mechanisms for protecting international investors.
What role does information asymmetry play in investment risks?
Information asymmetry creates a gap between what companies know and what investors know, potentially leading to conflicts of interest and the need for stronger legal protections.
How do government actions like nationalization impact global investors?
Events like the nationalization of the e-learning sector in China illustrate the risks of expropriation, highlighting why robust investor protection measures are vital for maintaining confidence.
- Quote paper
- Marcel Mosner (Author), 2022, Investor Protection, Munich, GRIN Verlag, https://www.grin.com/document/1303231
