Law Essay Example | Topics and Well Written Essays - 4250 words

Law - Essay Example The researchers developed a summary of their dataset. They made comparisons between this dataset and quantification approaches of legal rules that had been used before. By using secondary analysis, researchers can gain new ideas from old data2. The researchers also wanted to find out whether corporations from countries based on common law seek funds for running purposes and investment projects from external capital sources, chiefly the stock market, than from internal sources. The researchers performed econometric analyses, in their bid to answer the research questions, test hypotheses, and make conclusions, based on the findings3. In carrying out this empirical research, the researchers used a panel dataset whose main contents had been gathered from a group of developing and developed countries. The researchers used the dataset to carry out econometric analyses. It is also evident that the authors of this article applied various datasets, using the indices that the researchers const ructed to allow them investigate the impacts of legal change as time passes by and to explore the correlation of such legal changes to economic development4. The indices that the researchers used in this study took into account codes pertaining to self-regulation and other sources of norms, with an obligatory effect. The rules that the researchers included in their panel dataset included those that originate from takeover codes and corporate governance codes5. In this research, coding was done for principally noteworthy court rulings, with sufficient information of the legal sources in the documents that comprise datasets. LLSV does not apply this practice when developing datasets for research. The researchers attempted to code using more values as they analysed the impact of an identified legal ruling. LLSV indices do not code using more values during analysis of previous legal rulings. Predominantly, binary variables are used in LLSV coding uses, and assumptions are made that if a rule may either apply or not. This does not take legal rulings which may be applied differently in different or specific situations. Also, this does not consider the likelihood of ambiguity or vagueness while making interpretations of legal rulings. In this study, intermediate scores between 0 and 1 were included by the researchers in their datasets6. The researchers included the codes of ‘comply’ or ‘explain’ within their coding. In addition, longitudinal indices were used by the researchers to assign codes to various judicial ruling, alongside the various changes that such rulings have undergone since their introduction. This research empirical design is subject to various criticisms. For instance, in coding for the evolution of legal rules, legal research tools were used to evaluate and analyse the state of law. However, the information is scarce and may not be retrieved from history. Backfilling the information may be difficult because the information is old and may be out of date, dating twenty or ten years ago, and may not be sufficiently detailed because complexity in regulation has been increasing time and again7. Secondly, the study employed numerous variables so as to increase the accuracy of the research findings. However, it is worthy to note that the use of many variables does not guarantee accuracy in the findings. Instead, numerous variables might lead increase complexity and ambiguity, which might lead to invalid findings. For instance, the study found out