Legal Origin Research Articles

Global property rights and land use efficiency

The study investigates the global impact of land property rights on land use efficiency (LUE), as measured by the key indicator for United Nations Sustainable Development Goal 11.3.1, namely Land Consumption Rate to Population Growth Rate. By utilizing human-land change data from 165 countries spanning the period between 1990 and 2020, we have developed a fixed effects model and employed legal origins as an instrumental variable to examine the influence of land property rights security on LUE. Our findings demonstrate that the security of land property rights significantly influences LUE, with common law countries exhibiting higher levels of LUE compared to civil law countries while controlling for other variables. Stability in property rights encourages long-term investments in infrastructure and sustainable land management practices, thereby enhancing land productivity and mitigating urban sprawl. Furthermore, safeguarding property rights limits governments’ power to expropriate lands, facilitating rational and efficient land transactions that contribute towards achieving Sustainable Development Goals.

Emergency Labor Constitutionalism and Emergency Regulations

Abstract Drawing on the intersection of the theory of the regulatory state, labor regulation theory of the legal origin, and the literature on emergency constitutionalism, the article introduces the notion of labor emergency constitutionalism, within the welfare emergency regulatory state. While focusing on the novel issue of emergency constitutionalism within the labor market, the article presents two variants for labor emergency constitutionalism and the development of different roles of the courts. The article explores the jurisdiction of Israel and Britain, presenting two distinct approaches to constitutionalism. Based on the problems invoked by both models, the article presents a suggested new model.

The nexus between entrepreneurship and property rights: role of legal origin in entrepreneurship and property rights

ABSTRACT Understanding the institutional context in each country that influences entrepreneurship is essential. This study examines a functional form of property rights in entrepreneurship by legal origin. Our study uses data published by the Global Entrepreneurship Monitor. We explored the correlation between entrepreneurship and property rights using macro data for 51 countries from 2001 to 2020, categorizing the countries into four types of legal origin. The results showed that the form of function between entrepreneurship and property rights differs according to the legal origin. The association between entrepreneurship and property rights showed an upward trend in English and German legal-origin countries but a gradual quadratic bell curve trend in French legal-origin countries. The association between property rights and entrepreneurship was irrelevant in countries with inherited Scandinavian legal origins. The observation of countries by legal origin revealed that expanding property rights does not necessarily promote entrepreneurship. Therefore, the study recommends that the level of property rights that can be adjusted to one’s institution be determined according to the variety of capitalism.

Identifying the ‘deep roots’ of economic freedom with implications for policy and economic reform

Because of the importance of economic freedom for a country’s prosperity and growth, subsequent studies now try to uncover which factors explain the cross-country differences in economic freedom. Based upon Lawson, Murphy, and Powell’s (2020) recent literature review we provide the first empirical examination of the relative importance of all 18 of the key “deep root” factors they identify across the published literature. We employ a Bayesian Model Averaging (BMA) approach that is ideally suited for model identification and provides a statistical means to rank the importance of these deep root factors. Our results suggest that (in order of importance) latitude, exitability as measured by a country’s shape and coastal access, genetic distance, religion, and French legal origins are the most important of the deep root determinants of economic freedom. Policy implications of our findings are also discussed.

Are bond markets and bank credits complementary or substitutable? Evidence based on the rule of law and countries’ legal origins

Bond and bank financing coexist despite their similarities as debt financing. I hypothesize that strengthening the rule of law in each country impacts corporate monitoring and firms’ financing preferences. I use panel data from 50 countries to analyze how the strength of the rule of law differs depending on countries’ legal origins. By using a regression model with an interaction term, I estimate marginal effects to determine if a stricter rule of law promotes bank or bond financing. The findings show that countries with common-law legal origins tend to have a stronger rule of law than civil law countries. A stronger rule of law increases bank lending but has a negative impact on bond issuance. This effect has a more significant impact in countries with Scandinavian legal origins and only a minor effect in countries with French legal origins. These differences can be attributed to how each country addresses agency problems, concerns regarding bank influence, and the availability of additional banking services.

The chloroplast genome structure of Turpinia affinis (Staphyleaceae)

The species Turpinia affinis Merr. et Perry 1941 is widely distributed throughout southwestern China. In folk medicine, this species is often used as a substitute for the Chinese medicine Turpiniae Folium, whose legal origin is T. arguta (Lindl.) Seem. In order to ascertain the relationship between these two species, the chloroplast genome of T. affinis was aequenced and assembled, resulting in a typical quadripartite molecule with a length of 160,769 base pairs and an overall GC content of 37.3%. Additionally, 131 genes were annotated, comprising 86 protein-coding genes, 37 tRNA genes, and 8 rRNA genes. A maximum likelihood analysis demonstrated that the Turpinia species form a monophyletic clade, with T. affinis positioned as the sister taxon to the clade comprising the remaining species within the genus. This outcome enhances the genomic data for the genus Turpinia and will contribute to further investigations into phylogenetics, evolution, and sustainable resource utilization.

Exploring Gender Inequality: A Comparative Study of Legal Origins and the Varieties of Capitalism

Exploring Gender Inequality: A Comparative Study of Legal Origins and the Varieties of Capitalism

The Differential Impact of Legal Origins on Firm Productivity

The Differential Impact of Legal Origins on Firm Productivity

Competition Policy Dynamics: the Influence of Domestic-Specific Factors in a Globalized Landscape

The primary purpose of this essay is to unravel the multifaceted dynamics of competition policy and offer insights into the factors driving policy variations worldwide. It aims to contribute to the ongoing discourse on competition policy by bridging the gap between theory and practice, offering empirical support for observed trends, and providing practical implications for policymakers and practitioners. This research employs the literature study. The analysis reveals that, while there is a discernible global convergence toward economic-based competition policy and independent competition authorities, domestic-specific factors such as levels of privatization, democracy, political ideology, legal origin, and types of capitalism continue to exert significant influence, shaping competition policies in distinctive ways. This nuanced understanding challenges the notion of complete global convergence and underscores the importance of context-sensitive policy design. The findings have practical implications for policymakers and practitioners, emphasizing the need to tailor competition policy frameworks to the unique circumstances of each country. In a rapidly changing global landscape, recognizing and accommodating these factors is crucial for the continued relevance and adaptability of competition policy.

Overview of Community Forest Management For Logging in The State of Amazonas

Objective: Present an overview of the licensing of community timber forest management activities in the State of Amazonas between the years 2000 and 2021. Theoretical Framework: This study is addresses the topic of community-based timber forest management. It presents its history and evolution in the Amazon, addressing the main implementation difficulties, supporting legislation and the quantification of initiatives in the region. Method: The present study is characterized by a qualitative and quantitative approach, using bibliographic and documentary research. A survey was carried out on community timber forest management activities in the State of Amazonas, using the information base provided by the Amazonas Environmental Protection Institute. Results and Discussion: The results obtained revealed that between 2000 and 2021, 100 environmental exploration licenses were issued for community logging forest management, with projects located in 11 municipalities in the State of Amazonas, with emphasis on Maraã, Santo Antônio do Iça and Uarini. The total volume of licensed wood for the period was 68,122.43 m3 and 10,242 trees were harvested, with emphasis on the species assacu (Hura crepitans L.), macacarecuia [Eschweilera albiflora (DC.) Miers] and mulateiro [Calycophyllum spruceanum (Benth.) K.Schum.]. Research Implications: Based on the understanding from bibliographical and documentary analyzes of community forest management activities, it is expected to contribute to the strengthening of a planning policy on the activity, both at the local and regional level. Originality/Value: There is no unifying source of data on community forest management in the State of Amazonas that can generate consistent and updated statistics in a timely manner. In this way, the research aims to contribute to strengthening the activity at both local and regional levels, making community timber forestry management not just a simple supplier of raw materials, but linked to a wood production chain, generating high-value-added products, with raw materials of legal origin.

How Institutional Quality Causes Financial Development?

Institutional quality has received considerable attention in recent years as a potential determinant of variation in the level of financial development across countries. The current paper critically reviews the literature linking formal and informal institutions and financial development. It discusses the main theories in this regard—namely, legal origins theory, the new political economy of finance, and cultural finance. The paper provides an overview of the latest empirical research in each of these areas with a focus on the data and methods used. The directions for further research are also highlighted.

الوصيَّة الواجبة في الفقه الإسلامي مقارنة بالقانون الإماراتي

God has legislated the bequest (will) for us from one-third of the wealth, and it should not be for a relative who is an heir. It often happens that a person dies during the lifetime of one of his parents, leaving behind children. When a grandfather or grandmother dies, the grandchildren are withheld from the inheritance and it is divided among their uncles. The obligatory will has recently appeared in law, which has allocated these grandchildren a share of their grandfather’s money in accordance with the law. This study aims to identify the jurisprudential opinions on the issue of the obligatory will, the position of Emirati law regarding the entitlement of grandchildren withheld from the obligatory will, its amount and conditions, and the legal origin of the obligatory will in Islamic jurisprudence. The study concluded that the scholars of the zahiri school of thought were of the view that a will is obligatory, and therefore it is taken from the person’s estate if he dies and did not make a will during his life. Because it is an obligation in their view, the right to it is not forfeited by the death of the person. However, the majority of scholars held that a will is desirable and recommended, so nothing is taken from the deceased’s estate if he did not make a will during his lifetime. Emirati law based its obligation of the will on the opinion of the zahiri scholars, who say that the will is obligatory for anyone other than the heir. Emirati law allocates it to the withheld grandchildren and not the rest of the relatives, so that it is for the son’s children and the daughter’s children, and any of these children’s children. The male is allocated the equivalent of the share of two females. Based on its findings, the study recommends the need for the grandfather to make bequests to his grandchildren during his lifetime as a precaution and to avoid jurisprudential disagreement, and the need to direct people more to be careful about making bequests to their relatives who do not inherit, especially the grandchildren who are withheld from inheritance.

THE GENESIS OF THE PRINCIPLES OF THE LEGAL STATUS OF AN INDIVIDUAL IN EUROPEAN INTERNATIONAL LEGAL REALITY

Introduction. The article considers historical and legal origins of the foundations of the legal status of an individual in the European system of protection of human rights and freedoms as part of international legal reality of the region. The work examines the phenomenon of the legal status of a person in the European international legal reality in view of its modern normative regulation, protection mechanisms at the regional level and worldview sources of the evolution of its foundations. Summary of the main research results. It was determined that the European international legal reality is a regional phenomenon of international law and includes universal and European regional norms and principles, sub-regional European international legal acts, legal culture and legal consciousness, moral value characteristics and institutions of European international law. The latter is closely related to the phenomenon of the European international legal reality in terms of reflecting the objective legal realm in Europe. The main purpose of the functioning of the European international legal reality is the protection of human rights and freedoms in the region. The regional system of protection of human rights and freedoms is an integral part of the European international legal reality and guarantees the fundamentals of the legal status of a person in Europe. The main principles of the legal status of a person in the European international legal reality are the general principles and standards of law, the moral, value and ideological characteristics of European international law. The genesis of the foundations of the legal status of a person in Europe and European identity in general is ancient Roman law, Christian dogmas and Germanic customs. It was the preservation of the main system-forming components of the Roman legal complex of principles and norms, the influence of Christian spirituality concept on the general European attitude towards the individual and the separation of the Romano-Germanic legal family features on the basis of Germanic phenomenon that became the basis of the modern European legal reality and laid the foundations of the individual's legal position. Conclusions. At the current stage of the European international legal reality development, the legal status of a person is a fundamental category that emerged and evolved on the basis of centuries-old legal traditions of the region. Current regulatory and legal consolidation and functioning of regional mechanisms for the protection of human rights and freedoms is the result of historical and legal evolution of the foundations of the legal status of a person in Europe.

Examining the value relevance of financial statements in European countries: the importance of legal origins on cross listing decisions

Examining the value relevance of financial statements in European countries: the importance of legal origins on cross listing decisions

Are wars detrimental to the environment? Evidence from air pollution and land use

ABSTRACT This paper studies the long-run effect of war on environmental quality. Using data from the UCDP/PRIO Armed Conflict Dataset and the World Development Indicators, we apply a generalized difference-in-differences methodology. We compare the airborne emissions of countries that have experienced war after World War II (WWII) before and after the occurrence of the war event with the emissions of countries that did not experience any war after WWII. We find that, although wars decrease per capita CO2 emissions, they increase CO2 intensity. We also examine the effect of war on forest cover, which is found to be positive across all specifications. Lastly, we document differential effects by war type, country’s legal origins, and income level.

ESG and ESG controversies on firm risks in the emerging markets: The moderating roles of Shariah screening and legal origins

Purpose – This study examines the impact of environmental, social and governance (ESG) and ESG controversies on firm risk, and proposes the moderating roles of Shariah screening and legal systems over the relationship. Design/Methodology – The research data were 522 firms from 16 emerging markets over the period 2013-2021 (4689 observations). The data (i.e., ESG, financial data, etc.) obtained from the Refinitiv Eikon database. The panel regression model was used to examine the relationships of variables studies. Findings – We find that ESG is negatively related to risks while ESG controversy is positively related to risks. This suggests that when firms engage in more ESG activities, stakeholders’ relationships are reinforced, and lead to reduced firm risks. Further, this study also finds that both Shariah screening and legal environment play significant moderating roles in reducing risks via their influence on ESG and ESG controversies. The evidence is consistent with the stipulation that Shariah-compliant firms are more inclined to engage in ESG activities. Originality/Value – This study is unique as it is an attempt to examine the moderating role of Shariah screening and legal system in influencing the impact of ESG and ESG controversies on firm risk. Practical Implications – The findings suggest engaging more aggressively in ESG activities can benefit from their risk mitigating effect. Further, the present evidence of the positive impact of Shariah screening in mitigating risk via ESG and corporate controversies. This evidence lends credibility for firms to be considered as Shariah-compliant.

Corporate social responsibility and investment efficiency: The roles of national stakeholder orientation and legal origins

Utilizing an international setting consisting of 21,039 observations from 43 countries during the years from 2010 to 2019, spanning the period between the global financial and health crises, we first reveal that the two broad legal traditions of the country shape the positive connection between CSR performance and investment efficiency. We find a stronger positive linkage for companies operating under a civil law regime. Our findings also imply that U.S. firms buck the trend among English common law firms and have probably shifted their orientation to a more balanced consideration of stakeholders. Plus, we discover that legal origins are a stronger predictor of CSR perception by showing that stakeholders of the Scandinavian civil law system are more responsive to CSR activities than those in the German, French, and socialist civil law countries. Results are robust to a battery of sensitivity tests.

Does downside risk in the stock market differ by legal origin? The impact of property rights and the rule of law on stock markets

Downside risk in stock prices is a significant focus in stock investment. This study investigates how the legal origin of each country affects its property rights and the rule of law, and how these property rights and the rule of law affect the downside risk of the stock market differently. Value-at-risk (VaR), estimated by the rate of return on a stock market index, is used as the downside risk of the stock market. We estimate the data from 57 countries, showing that the intensity of property rights and the rule of law vary by legal origin. We also find that the impact of property rights and the rule of law on the downside risk of the stock market varies by legal origin. In particular, strengthening property rights and the rule of law in countries with French legal origins lowers downside risks. However, the marginal effects of property rights and the rule of law on downside risk are positive for German legal origin. Thus, because of the observed varieties of capitalism, we should consider the legal environment and implement policies compatible with the legal origin.

Legal origin and bank lending behavior in developing countries: The mediating role of revenue diversification

AbstractThis paper explores the relationship between legal origin, revenue diversification, and bank lending behavior. The analysis is based on a sample of 2590 commercial banks operating in 139 developing countries from 2004 to 2022. Using various panel data estimation techniques and alternative measures of bank lending behavior, the results indicate that banks in common law countries experience lower levels of loan growth compared to their counterparts in civil law countries. The study results also show that revenue diversification indirectly alleviates the negative effect of loan growth in banks originating from a common law legal origin. Notably, this effect is not observed in banks within low‐income and African countries, highlighting the importance of policies aimed at enhancing institutional capacity within their legal and judicial systems. Overall, the results of this study underscore the significance of legal origins in shaping the lending dynamics of banks in developing countries.

Country risk, global uncertainty, and firms’ cash holdings: Do the role of law, culture, and financial market development matter?

To the extent of our knowledge, there is a gap in scrutinizing the impacts of the country's risk and global uncertainty on Asian firms' cash holdings. Therefore, this work aims to shed light on this gap by choosing 989 listed non-financial Asian firms and performing both the static (fixed-effects) and dynamic (Difference-GMM and System‐GMM) panel data methods between 2008 and 2020. The findings reveal that an increase in a country's risk and global uncertainty stimulates firms to stockpile more cash though the impact of country risk is more pronounced. Likewise, the results underscore that among the country risk factors, firms have more precautionary motives to stockpile more cash with increases in financial and political instability while they hold more cash with rises in economic stability. Remarkably, the results emphasize that the impacts of country risk and global uncertainty on cash holdings are more prominent in environments characterized by common-law legal origin, high uncertainty avoidance cultures, and less financial market development. Moreover, the results reveal that firm-specific factors including growth opportunity, leverage, profitability, dividend, and size have an important role in shaping Asian firms' cash holdings policy.