INTRODUCTION I CONSIDERING LEGAL ORIGINS A The Classic Differences B Legal Origins and Financial Progress i Protecting M inority Stockholders via Fiduciary Duties 2 Overregulating Financial M arkets C The Differences Erode D Can Legal Origin Anchor Law as the Primary Cause? II STATE POWER AND LEGAL ORIGIN IN THE TWENTIETH CENTURY A The Rise of the Regulatory State in the Twentieth Century B The Power of the State i A Timeline of State Power in the Twentieth Century 2 Timelines of Government Budgets, Government Transfers, and Financial M arkets 3 Regulating Financial and Labor M arkets 4 Instruments and Power C Which System Regulates Securities M arkets M ore? i Regulatory Budgets 2 T he S E C 4 II REEXAMINING THE DATA: DO POLITICAL ECONOMY DIFFERENCES BETTER EXPLAIN FINANCIAL DIFFERENCES? A Reexamining Legal Origins as Predicting Ownership Separation in the W ealthy W est i Corporate Law, Legal Origin, and Legislative Policy 2 The World W ars 3 Invasions and Military Occupation: The Tw
I THE EVIDENCE ON CONVERGENCE A Formal Legal Change B The Structure of Share Ownership C The Growth of European Stock Markets D The Emergence of an International Market for Corporate Control E A Preliminary Evaluation F The Status of the Insider-Dominated Firm II WHEN DOES SEPARATION OF OWNERSHIP AND CONTROL ARISE? A HISTORICAL PERSPECTIVE A The United States Experience 1 The Role of Investment Bankers 2 The New York Stock Exchange as Guardian of the Public Investor B The British Experience C A Civil-Law Contrast: The French Experience D The German Experience: Statist Intervention That Stunted the M arket E A Preliminary Summary III\ DOES LAW MATTER?\ RECONSIDERED A Law and the Decentralized Common-Law World B The Sequence of Legal Change: Reinterpreting LLS&V 1 The United States Experience 2 The Global Experience C The Political Theory of Dispersed Ownership D Implications for Transitional Economies IV C ONCLUSION
