The Significance Of The Listed Companies On Investor Protection

One of the important functions of company governance is to protect investors, especially the interests of minority shareholders. Studies have shown, the company valuation, the width and depth that the capital market develops and the growth of economy, are all decided by the legal protection of minority shareholders of this country. If the company valuation is high, the legal protection is effective, and vice versa. In our country the legal protection is poor because of special surrounding. So we should pay more attention to legal protection of minority shareholders for the size and valuation of capital markets and economy. The paper illuminates the importance of investor protection by listing the expropriation of minority shareholders. Fist we find that law factor is important in investor protection by comparing the way of other countries in the world, and we also find that the countries with "the common law" perform better than those with "the civil law" in the investor protection. Then the paper come to the most important part, that is illustrate the reason of investor protection from three angles, which is the valuation of company, the size and breadth of capital markets and the prospect of economy of whole country. This part is the core of the paper and the weakness of other researchers. But we should make clear that invest protection is not the whole for the valuation of company, capital markets and the prospect of economy, it is necessary very much. In the end we provide some suggestion for legal protection and the weakness of the paper.