Capital-Market Effects of Securities Regulation: Prior Conditions, Implementation, and Enforcement

• 成果类型: Article
• 署名作者: Christensen, Hans B.; Hail, Luzi; Leuz, Christian
• 署名单位: University of Chicago; University of Pennsylvania; National Bureau of Economic Research
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hhw055
• 发表日期: 2016
• 页码: 2885
• 关键词: sarbanes-oxley act; economic consequences; MANDATORY DISCLOSURE; INFORMATION; ask; returns; IMPACT; FIRMS; LAW; liquidity

摘要

We examine the capital-market effects of changes in securities regulation in the European Union aimed at reducing market abuse and increasing transparency. To estimate causal effects for the population of E.U. firms, we exploit that for plausibly exogenous reasons, such as national legislative procedures, E.U. countries adopted these directives at different times. We find significant increases in market liquidity, but the effects are stronger in countries with stricter implementation and traditionally more stringent securities regulation. The findings suggest that countries with initially weaker regulation do not catch up with stronger countries, and that countries diverge more upon harmonizing regulation.