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Full-Text Articles in Securities Law
Reputational Sanctions In China's Securities Market, Benjamin L. Liebman, Curtis J. Milhaupt
Reputational Sanctions In China's Securities Market, Benjamin L. Liebman, Curtis J. Milhaupt
Faculty Scholarship
Literature suggests two distinct paths to stock market development: an approach based on legal protections for investors, and an approach based on self-regulation of listed companies by stock exchanges. This Essay traces China's attempts to pursue both approaches, while focusing primarily on the role of the stock exchanges as regulators. Specifically, the Essay examines a fascinating but unstudied aspect of Chinese securities regulation – public criticism of listed companies by the Shanghai and Shenzhen exchanges. Based on both event study methodology and extensive interviews of market actors, we find that the public criticisms have significant effects on listed companies and …
Mome In Hindsight, Ronald J. Gilson, Reinier Kraakman
Mome In Hindsight, Ronald J. Gilson, Reinier Kraakman
Faculty Scholarship
Two decades ago, the Virginia Law Review published our article “The Mechanisms of Market Efficiency” (MOME), in which we tried to discern the institutional underpinnings of financial market efficiency. We concluded that the level of market efficiency with respect to a particular fact depends on which of several market mechanisms — universally informed trading, professionally informed trading, derivatively informed trading, and uninformed trading (each of which we explain below) — operates to reflect that fact in market price. Which mechanism is operative, in turn, depends on how widely the fact is distributed among traders, which, I turn, depends on the …