What is the relationship between the size of the economy and ownership concen-tration? how can you tell?

(b) In the column of "Independent Variable", which ones are examples of shareholder rights? Based on the column "Shareholder and Creditor Rights", how do they affect ownership concentration? 

(c) In the column of "Basic Regression", the coefficient of "French origin" is positive and significant. 

What does this suggest? In the column of "Shareholder and Creditor Rights". the coefficient of "French Origin" becomes insignificant. What does this suggest?

 

Transcribed Image Text:

Independent Variable Log of GNP per capita Log of GNP Gini coefficient Rule of law Accounting French origin German origin Scandinavian origin Antidirector rights One share-one vote Mandatory dividend Creditor rights Legal reserve required Intercept Number of observations Adjusted R² Basic Regression .0077 (.0097) -.0442* (.0119) .0024*** (.0014) .1296* (.0261) -.0113 (.0666) -.0496 (.0371) .7785* (.1505) 45 .5582 Shareholder and .0397 (0242) <-.0428* (.0118) .0027 (.0023) <-.0143 (.0115) -.0029*** (.0016) .0733 (.0802) -.0025 (.0728) -.0430 (.0479) <-.0315** NOTE-Variables are defined in table 1. Robust standard errors are in parentheses. Significant at the 1 percent level. ** Significant at the 5 percent level. *** Significant at the 10 percent level. (.0150) -.0497 (.0406) 2197*** (.1113) -.0128 (.0171) -.2237** (.0766) .8686 (.2952) 39 .7348 Independent Variable Log of GNP per capita Log of GNP Gini coefficient Rule of law Accounting French origin German origin Scandinavian origin Antidirector rights One share-one vote Mandatory dividend Creditor rights Legal reserve required Intercept Number of observations Adjusted R² Basic Regression .0077 (.0097) -.0442* (.0119) .0024*** (.0014) .1296* (.0261) -.0113 (.0666) -.0496 (.0371) .7785* (.1505) 45 .5582 Shareholder and .0397 (0242) <-.0428* (.0118) .0027 (.0023) <-.0143 (.0115) -.0029*** (.0016) .0733 (.0802) -.0025 (.0728) -.0430 (.0479) <-.0315** NOTE-Variables are defined in table 1. Robust standard errors are in parentheses. Significant at the 1 percent level. ** Significant at the 5 percent level. *** Significant at the 10 percent level. (.0150) -.0497 (.0406) 2197*** (.1113) -.0128 (.0171) -.2237** (.0766) .8686 (.2952) 39 .7348

Answer rating: 100% (QA)

a There is a significant relationship between the size of the economy and the concentration of ownership When there is widespread ownership concentrat... View the full answer