Working Paper: NBER ID: w9882
Authors: Rafael La Porta; Florencio Lopez-de-Silanes; Andrei Shleifer
Abstract: We examine the effect of securities laws on stock market development in 49 countries. We find almost no evidence that public enforcement benefits stock markets, and strong evidence that laws facilitating private enforcement through disclosure and liability rules benefit stock markets.
Keywords: No keywords provided
JEL Codes: G15; G18; G3; G22; P5
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| public enforcement mechanisms (K40) | stock market development (G10) |
| private enforcement laws (P14) | stock market development (G10) |
| disclosure requirements (G28) | investor confidence (G24) |
| investor confidence (G24) | stock market development (G10) |
| reputational incentives (D82) | quality of securities (G12) |
| quality of securities (G12) | stock market integrity (G18) |