Fiche du document
2014
- handle: 10670/1.azcgx3
- halshs: halshs-01025922
- doi: 10.1093/rof/rft010
Ce document est lié à :
info:eu-repo/semantics/altIdentifier/doi/10.1093/rof/rft010
Mots-clés
Governement policy and regulation Insider trading Event studies Information and market efficiency Business and securities law Ratings and ratings agencies Brokerage Venture capital Investment BankingSujets proches
Investment banks Banks and banking, Investment Interests, Conflict of Conflicts of interest Conflict of interests (Public office) Conflict of interests (Agency) Conflict of interestCiter ce document
M. Dubois et al., « Regulating Conflicts of Interest: The Effect of Sanctions and Enforcement », HAL-SHS : droit et gestion, ID : 10.1093/rof/rft010
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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.