Law, Politics and Financial Development: The Great Reversal of the UK Corporate Debt Market
|Speaker:||Prof John Turner, Professor of Finance and Director of Research, Queens University, Belfast|
|Date:||Wednesday 24 October 2012|
|Time:||14:00 - 15:30|
|Location:||Building One: Constantine Leventis Teaching Room|
This paper examines the role of creditor protection in the development of the UK corporate bond market. This market grew rapidly in the late nineteenth century, but in the twentieth century it experienced a reversal, albeit with a short-lived post-1945 renaissance. Such was the extent of the reversal that the market from the 1970s onwards was smaller than it had been in 1870. We find that law does not explain the variation in the size of this market over time. Alternatively, our evidence suggests that inflation and taxation policies were major drivers of this market in the post-1945 era.