LaPorta, Rafael, Florencio Lopez-de-Silanes, and Andrei Shleifer. 2006. “What Works in Securities Laws?.” Journal of Finance 61 (1): 1-32.
What Works in Securities Laws?
We examine the effect of securities laws on stock market development in 49 countries. We find little evidence that public enforcement benefits stock markets, but strong evidence that laws mandating disclosure and facilitating private enforcement through liability rules benefit stock markets.