The Enforcement of Insider Trading Laws Around the World (1900-2022)

Economic theory suggests that sometimes the enforcement of insider trading laws may be more important than the existence of these laws. Is that true? I find that at the end of 2022: (1) Insider trading laws exist in most countries; they are not enforced in many countries; (2) firms in countries with stricter enforcement of insider trading laws have a lower cost of equity and more liquid capital markets, and this link is stronger in emerging markets; (3) the enactment of insider trading laws that are not enforced does not improve capital markets; there is some evidence that it is better to have no insider trading law than to have an insider trading law that is not enforced; (4) firms are valued higher in countries with stricter enforcement of insider trading laws; and (5) the link between enforcement of insider trading laws and market efficiency is weak