Corporate Governance and Stock Market Development: India, China and Other Large Emerging Markets
This seminar examines the connections between corporate governance, investor protection and stock market development in India, China and other large emerging markets. The seminar begins with a general discussion of the role of the law in stock market development. This includes examining why stock markets may be seen as desirable, why law might be important in the development of such markets and what role corporate law and investor protection, in particular, play. From here the seminar examines whether and how these general theories, developed primarily by examining Western Europe and other developed markets, operate in large emerging markets. The first country to be examined is India followed by China. The background regimes in India and China, the reform measures they adopted and the effects of their corporate governance reforms are explored. Following this the experiences in Brazil, Russia and Korea are briefly discussed. The seminar concludes with an analysis of how studying large emerging markets may help to enhance our understanding of the role of the law in stock market development and what concrete reform proposals and policy prescriptions may emanate from that enhanced understanding. The readings for the sessions will range from theoretical, to policy oriented, to “black letter” law, to empirical.
Students are required to write six (6) memos during the semester examining the readings for 6 different sessions or, in lieu of that and with the prior approval of Professor Khanna, to write a paper examining in depth a topic of relevance to this seminar. Regardless of which option (memos or paper) is chosen, excellent class participation will count towards the final grade.