The Role of Gatekeepers in Capital Markets
Posted: 24 Jun 2019
Date Written: May 1, 2019
Gatekeepers in financial markets have the power to provide the institutional stability, fortitude, and direction necessary for the development and the smooth functioning of capital markets. At the same time, they are often motivated by their own private incentives. This along with the tradeoffs they face, and the at‐times unintended consequences of the regulations they propose and enforce, can undermine their effectiveness. A thorough understanding of gatekeepers and their roles can thus illuminate academics, the financial community, and regulators on how such gatekeepers can be the most effective and generate the greatest benefits for capital markets. Since gatekeeping roles and the literature they have inspired encompass a wide array of institutions and agencies, our overview concentrates on those that the conference papers appearing in this volume focus on. We conclude that collectively, the papers contribute to significant progress, and point out some crucial areas that call for further investigation and offer opportunities for future research.
Keywords: gatekeepers; regulators; credit rating agencies; credit rating; SEC; acquisitions; mandatory disclosures; litigation risk; courts of law; judge ideology; auditors; audit committee; FINRA; financial advisors
JEL Classification: D02; G18; G24; G28; G34; G38; K22; K41; M40; M41; M42; M48
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