
Contents
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I. Introduction I. Introduction
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II. Existing Empirical Legal Research into Financial Markets, Law, and Regulation II. Existing Empirical Legal Research into Financial Markets, Law, and Regulation
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A. Studies on the efficient markets hypothesis and mandatory disclosure A. Studies on the efficient markets hypothesis and mandatory disclosure
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B. Studies on behavioralism and its implications for investor protection regulation B. Studies on behavioralism and its implications for investor protection regulation
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C. Studies on market misconduct C. Studies on market misconduct
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D. Law and market development D. Law and market development
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1. LlSV—the main arguments 1. LlSV—the main arguments
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2. The relative roles of public and private enforcement of law 2. The relative roles of public and private enforcement of law
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E. Avoidance and unintended consequences of regulation E. Avoidance and unintended consequences of regulation
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F. The dynamics of financial regulatory regimes F. The dynamics of financial regulatory regimes
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1. Regulatory competition 1. Regulatory competition
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2. Regulatory practices 2. Regulatory practices
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a. Self-regulation and norm-production a. Self-regulation and norm-production
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b. State based regulation and firms' responses to regulation b. State based regulation and firms' responses to regulation
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III. Analysis and Conclusion III. Analysis and Conclusion
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References References
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7 Financial Markets
Get accessJulia Black is Professor of Law at the London School of Economics and Political Science.
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Published:18 September 2012
Cite
Abstract
This article analyses the current state of empirical legal research in the law and the regulation of financial markets. It aims to provide a brief survey of the main work done either by lawyers or by others but which is pertinent to the operation of law and regulation. It focuses on six main areas of research and debates. These are the debates on the efficient markets hypothesis and mandatory disclosure rules in securities regulation; studies on behavioralism and their impact on disclosure as a tool for protecting investors; studies on the impact of rules relating to market misconduct on market development; research into the relationship between legal rules and securities market development; evidence of the unintended impacts of regulation; and research into the dynamics of financial market regulatory regimes. Finally, this article mentions that understanding the general context in which law and regulation operates deepens our understanding of the nature, potential, and limits of law and regulation themselves.
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