Regulating Conflicts of Interest: The Effect of Sanctions and Enforcement - HAL Accéder directement au contenu
Article dans une revue Review of Finance Année : 2014

Regulating Conflicts of Interest: The Effect of Sanctions and Enforcement

Résumé

This article studies how legal sanctions and enforcement affect brokers’ conflicts of interest emanating from investment banking activities. We exploit the recent adoption of the Market Abuse Directive (MAD) across European countries and use the variation in legal sanctions and enforcement that exists in Europe to identify brokers’ reaction. Overall, the enactment of MAD significantly reduced optimistic investment advice. This reduction is larger in countries equipped with more severe legal sanctions and in countries that strongly enforce the rules. Our analysis underscores the importance of legal sanctions and enforcement power to understand the real consequences of regulatory changes.
Loading...

Dates et versions

halshs-01025922, version 1 (18-07-2014)

Identifiants

Citer

M. Dubois, L. Fresard, P. Dumontier. Regulating Conflicts of Interest: The Effect of Sanctions and Enforcement. Review of Finance, 2014, 18 (2), pp.489-526. ⟨10.1093/rof/rft010⟩. ⟨halshs-01025922⟩
57 Consultations
0 Téléchargements
Dernière date de mise à jour le 05/05/2024
comment ces indicateurs sont-ils produits

Altmetric

Partager

Gmail Facebook Twitter LinkedIn Plus