TY - UNPB
T1 - Enforcement and its impact on cost of equity and liquidity of the market
AU - Bhattacharya, Utpal
PY - 2006
Y1 - 2006
N2 - Theory suggests that enforcement of securities laws is important. If securities laws are not enforced, outside investors will doubt whether they will get their money back with a fair return. So outside investors will not give their money to firms (this leads to low liquidity in capital markets) or, if they give money to firms, they will demand a higher return (this leads to a higher cost of equity). There is little literature documenting the importance of enforcing securities laws. On December 8, 2005, I was asked by the Task Force to Modernize Securities Legislation in Canada to survey the little literature that exists, and prepare a report titled "Enforcement and Its Impact on Cost of Equity and Liquidity of the Market". This paper is that report.
AB - Theory suggests that enforcement of securities laws is important. If securities laws are not enforced, outside investors will doubt whether they will get their money back with a fair return. So outside investors will not give their money to firms (this leads to low liquidity in capital markets) or, if they give money to firms, they will demand a higher return (this leads to a higher cost of equity). There is little literature documenting the importance of enforcing securities laws. On December 8, 2005, I was asked by the Task Force to Modernize Securities Legislation in Canada to survey the little literature that exists, and prepare a report titled "Enforcement and Its Impact on Cost of Equity and Liquidity of the Market". This paper is that report.
UR - https://openalex.org/W149772769
M3 - Preprint
T3 - Social Science Research Network
BT - Enforcement and its impact on cost of equity and liquidity of the market
ER -