Читать книгу Equity Markets, Valuation, and Analysis - H. Kent Baker - Страница 66

Cumming, Groh, and Johan (2018) examine enforcement cases that involve detected market abuse, not actual (unobserved) fraud or suspected market abuse. They present data that suggest massive differences in enforcement despite similar rules across European countries. They also show that the data are consistent with the view that countries with more capital market activity are more likely to detect market abuse. Similarly, the data highlight that the legal quality in a country, with respect to the protection of shareholders and lenders, mitigates infringement activity. Also, the data suggest that enforcement authorities are more vigorous in detecting and reporting fraud when minimum pecuniary fines are higher.

Cumming et al. (2018) offer several policy implications based on their analyses. Legal enforcement of market abuse comes in three primary forms: (1) direct expenditures on enforcement officers, (2) quality of surveillance through information sharing and cooperation, and (3) rules pertaining to deterrence. Their data show that each of these three mechanisms is extremely important for detecting and deterring fraud. Expenditures on enforcement officers, surveillance, and enforcement rules are effective mechanisms to fight fraud in financial markets and to increase investor confidence in the existence of sound capital markets.