What Works in Securities Laws?
- Author(s): RAFAEL PORTA, FLORENCIO LOPEZ‐DE‐SILANES, ANDREI SHLEIFER
- Published: Jan 20, 2006
- Pages: 1-32
- DOI: 10.1111/j.1540-6261.2006.00828.x
We examine the effect of securities laws on stock market development in 49 countries. We find little evidence that public enforcement benefits stock markets, but strong evidence that laws mandating disclosure and facilitating private enforcement through liability rules benefit stock markets.