This paper revisits the issue of law enforcement and the design of monetary sanctions when the public law enforcer's incentives depart from those of a benevolent authority, which is the most frequent assumption made in the literature on crime deterrence. We …rst consider the case of an elected...

This paper revisits the issue of law enforcement and the design of monetary sanctions when the public law enforcer's incentives depart from those of a benevolent authority, which is the most frequent assumption made in the literature on crime deterrence. We first consider the case an elected...

This paper analyzes the determinants of public law enforcement policies when citizens vote for the timing and level of fi…nes. We consider situations where citizens and politicians disagree on the value of the expected social harm associated with some activities. We fi…nd that citizens vote...

The process of improving Corporate Governance in emerging markets touches on a number of different aspects of the market organization. One essential area is the regulation, scope, timing and of procedure for mandatory disclosure of information. Disclosure is very important for investors, since...

This paper analyses changes in the legal protection of shareholder and creditor rights in 24 transition economies from 1990 to 1998. It documents differences in the initial conditions and a tendency towards convergence of formal legal rules as the result of extensive legal reforms. Convergence...

This paper offers a first comprehensive analysis of legal change in shareholder and creditor rights protection in transition economies and its impact on the propensity of firms to raise external finance. The paper uses the investor rights indices developed by La Porta et al. (1998) as a starting...

Corporate criminal liability legislation has been the subject of a widespread debate around the world in response to the financial scandals of the early 2000s. The existing legal regimes en- tail compliance requirements, such as internal monitoring mechanisms, with the aim of inducing firms to...

Corporate liability regimes have two major social goals: (i) inducing corporations to internalize all social ramifications of their activity; and (ii) inducing corporations to prevent, deter, and report their employee misconduct. The scholarly polemic has shown that none of the liability regimes...

Market in financial instruments directive tried to suppress the rigidity of EU legislative procedure with introduction of principle based legislation. At that time this approach was seen as something new and fresh. Big financial crisis in 2008 showed that adopted solution didn’t fulfil the...

In China¡¯s transitional economy, government regulation could be a substitute for the lack of law mechanism and regulator¡¯s power could spill over into other areas not regulated. Then, theoretically it could construct implicit contracts. For example, China Securities Regulatory Commission...