Cross-Country Securities Enforcement as An Example of Pro-Cyclical Regulation

46 Pages Posted: 30 Jun 2018

See all articles by Anita Anand

Anita Anand

University of Toronto - Faculty of Law

Andrew James Green

University of Toronto - Faculty of Law

Date Written: June 29, 2018

Abstract

The procyclicality hypothesis predicts that after a stock market downturn, regulatory initiatives and therefore investor protections increase. Unlike the relevant literature which focuses on new legislation, we focus on the enforcement of securities law. Our work is consistent with the idea of crisis-driven regulation as we show that following the global financial crisis, there was an increase in settlements, total payments and number of parties sanctioned, suggesting more enforcement activity. We are the first study to examine securities regulatory enforcement across countries including Canada, the United Kingdom and the United States and to conclude that there is cross-country support for the pro-cyclicality hypothesis.

Suggested Citation

Anand, Anita and Green, Andrew James, Cross-Country Securities Enforcement as An Example of Pro-Cyclical Regulation (June 29, 2018). Available at SSRN: https://ssrn.com/abstract=3205750 or http://dx.doi.org/10.2139/ssrn.3205750

Anita Anand (Contact Author)

University of Toronto - Faculty of Law ( email )

78 Queen's Park
Toronto, Ontario M5S 2C5
Canada
4169464002 (Phone)

Andrew James Green

University of Toronto - Faculty of Law ( email )

84 Queen's Park
Toronto, Ontario M5S 2C5
Canada

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