Financial Market Regulations and Legal Challenges in South Asia: A Comparative Analysis between Family Firms and Concentrated Ownership Structures in South Asia
Financial Market Regulations and Legal Challenges in South Asia, IGI Global Amit K. Kashyap (Gujarat National Law University, India) and Anjani Singh Tomar (Gujarat National Law University, India) Projected Release Date: April, 2016. Copyright © 2016. 308 pages.
Posted: 14 Aug 2014 Last revised: 14 Mar 2016
Date Written: August 12, 2014
Abstract
As well as other aims and objectives, the chapter also seeks to address gaps in the literature -- gaps in the current and previous literature which support the fact that family firms, concentrated ownership systems and structures suffer from less problems and issues associated with information asymmetries than pre-dominantly based dispersed ownership systems and structures, as well as the claim relating to the worth and informational value of credit ratings agencies -- in particular that relating to the negative impact of credit ratings announcements and their more "significant" impacts in emerging markets. Can audits be effectively relied upon to provide better and more reliable information than credit ratings agencies?
If indeed, it could be demonstrated that credit agencies only have access to publicly available information and that they "lag behind financial markets" in processing such information, then there are fundamental reasons to justify the role of audits in the selected jurisdictions -- as well as reasons to discredit the claim that concentrated ownership systems and structures suffer from less problems and issues associated with information asymmetries than pre-dominantly based dispersed ownership systems and structures.
Finally, the chapter seeks to propose rules and recommendations whereby the current legal and regulatory challenges faced by financial markets in South Asia could be addressed.
Keywords: corporate governance, information asymmetries, concentrated ownership structures, principal agency theory, India, Pakistan, Sri Lanka, Maldives, Bhutan
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