Analysis of The role of protecting shareholders rights in expanding stock market in a selected developing countries

Stock market as a major part of financial market has an important role in mobilization of savings and finance of firms. Recognition of effective factors in expanding this market while increases the analyzing ability of researchers; it could be an appropriate guideline to policy-makers. In this study by using protecting the investors index which is calculated by the World Bank and the basis of available data from 46 developing countries during interval 2006-2010 have been investigated empirically, That which whether level of legal protection of shareholders, considering other important factors which affect the expansion of stock market has a meaningful role in expansion of stock market or not. Results of estimation of econometric model confirm this hypothesis meaning that countries making more legal protection of shareholders, have got more expanded stock market.