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Banking Supervision And Its Regulations — Comparative Study Between U.S. And China, Han Deng
Banking Supervision And Its Regulations — Comparative Study Between U.S. And China, Han Deng
Cornell Law School Inter-University Graduate Student Conference Papers
The health of the economy and the effectiveness of monetary policy depend on a sound financial system. A smoothly functioning banking supervision regime is one of the cornerstones of any financial system. Only a stable financial system, which is one of the key aims of state regulation and oversight, can optimally fulfill its macroeconomic function of efficient and low-cost transformation and provision of financial resources. A global financial meltdown will affect the livelihoods of almost everyone in an increasingly inter-connected world. The primary goals of supervision and regulations include protecting depositors' funds, maintaining a stable monetary system, promoting an efficient …
Do Individual Investors Affect Share Price Accuracy? Some Preliminary Evidence, Alicia Davis Evans
Do Individual Investors Affect Share Price Accuracy? Some Preliminary Evidence, Alicia Davis Evans
Law & Economics Working Papers Archive: 2003-2009
A common belief is that individual investors are noise traders that distort stock prices. Because accurate share prices are important for economic functioning, the market effect of retail investors has significant regulatory implications. This paper, employing a new NYSE retail trading data set and the R2 metric of share price informedness, contributes to the debate by demonstrating that as the proportion of trading by individual investors increases, the R2 of firms decreases. Adherents of the R2 methodology hold that lower R2's imply more accurate stock prices. The results of an instrumental variable estimation suggest that this relationship is a causal …