>I have no idea how share holders keep faith in firms based in dodgy >Third World nations. Probably some kind of trust, where paying out >dividends and respecting voting rights signals that future investors >will be treated well. But how often does this occur? Are these >multinationals not based in 3rd world not trying to avoid shareholder >rights?
No doubt a major reason for the lack of equity markets and equity financing in most third world countries. The US is almost unique in the prominent role played by equity markets in providing capital for business. Banks and other more hands on intermediaries play a much larger role even in Europe and Japan than in the US. - - Bill Dickens William T. Dickens The Brookings Institution 1775 Massachusetts Avenue, NW Washington, DC 20036 Phone: (202) 797-6113 FAX: (202) 797-6181 E-MAIL: [EMAIL PROTECTED] AOL IM: wtdickens
