Post by Sapphire Capital on Aug 15, 2008 19:48:00 GMT 4
Czech Mate: Expropriation and Investor Protection in a Converging World
Mihir A. Desai
Harvard Business School - Finance Unit; National Bureau of Economic Research (NBER)
Alberto Moel
Monitor Corporate Finance, Monitor Group
Review of Finance, Vol. 12, Issue 1, pp. 221-251, 2008
Abstract:
This paper examines the expropriation of a foreign investor by a local partner and the subsequent resolution of the case through international arbitration in favor of the investor. Despite the investor's 99% interest in the joint venture, the local partner managed to divert the entire value of the underlying entity for his personal benefit. This clinical examination of an expropriation and its aftermath illustrates the interaction of property and contract rights in a global setting, how corporate control is shaped by geography, and how multinational firms may be advantaged by availing themselves of stronger investor protections than local firms.
papers.ssrn.com/sol3/papers.cfm?abstract_id=1159299
Mihir A. Desai
Harvard Business School - Finance Unit; National Bureau of Economic Research (NBER)
Alberto Moel
Monitor Corporate Finance, Monitor Group
Review of Finance, Vol. 12, Issue 1, pp. 221-251, 2008
Abstract:
This paper examines the expropriation of a foreign investor by a local partner and the subsequent resolution of the case through international arbitration in favor of the investor. Despite the investor's 99% interest in the joint venture, the local partner managed to divert the entire value of the underlying entity for his personal benefit. This clinical examination of an expropriation and its aftermath illustrates the interaction of property and contract rights in a global setting, how corporate control is shaped by geography, and how multinational firms may be advantaged by availing themselves of stronger investor protections than local firms.
papers.ssrn.com/sol3/papers.cfm?abstract_id=1159299