Australia.
A few years ago there was a paper in the Journal of Finance showing that countries that take their legal systems from British Common Law have much more vibrant stock markets than those that do not. The main reasons are that they have more laws to protect consumers and that they have accounting laws that are less opaque.
In countries like Australia, the US and the UK, managers are given the task of maximizing the value of equity. In Germany, the objective is not to maximize shareholder value -- but stakeholder value. Stakeholders include bondholders, employees, consumers, etc. Therefore, managers do not always choose what is right for the owners of the firm.
Another legal matter complicates this issue. In the US, if you do not vote in a corporate election, management gets to vote your shares. In Germany, your investment bank gets to vote your shares. This gives an enormous amount of power to banks. Since the investment banks are also the banks that lend money to the companies, giving them this kind of power leads to large conflicts of interest.
Unless you run Deutchebank, I would choose Australia over Germany.
2006-09-19 02:21:17
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answer #1
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answered by Ranto 7
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Australia easily. Rich in resources China & others want while Germany stuck in low growth Europe with East Germany still a drag. Not even close. EWA the ETF best way to play.
2006-09-19 10:22:37
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answer #2
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answered by vegas_iwish 5
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Better investment site is ur own country rather than Germany / Australia. So go for it.
2006-09-19 04:53:29
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answer #3
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answered by Biss 3
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I think Germany is a better one. If you go through the World Bank data and other figures available, it is certain that Germany is comparatively better.
2006-09-19 04:52:24
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answer #4
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answered by Anonymous
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AUSTRALIA. Absoloutely. It's booming here. It really is. Especially where I am. All industries are booming and there is more potential for growth here too.
2006-09-19 04:53:37
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answer #5
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answered by Sexy Susie 1
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China. The nature of its people.
2006-09-19 10:08:17
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answer #6
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answered by Anonymous
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australia. developing...
2006-09-19 10:21:03
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answer #7
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answered by caumien 1
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