Monday, June 20, 2005

Can Expropriation be stopped by regulators?

Rules, if required to be set by a regulator, should be set to strike a delicate balance between economic growth and protection of minority shareholder interest. This balance is difficult to maintain. The "tightness" of these rules would also be different in different countries and culture. If the investors in a community is matured then better disclosure and transparency with good accounting practices and enforcement would limit expropriation of minority shareholders interest. Simply disclose everything and let investor and media to decide and monitor.

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