The Effectiveness of Disclosure Law Enforcement in Australia

Forthcoming, Journal of Corporate Law Studies (Volume 21, 2021)

University of Cambridge Faculty of Law Research Paper No. 30/2020

49 Pages Posted: 21 Sep 2020

See all articles by Jenifer Varzaly

Jenifer Varzaly

University of Cambridge - Faculty of Law; Durham University - Law School

Date Written: September 1, 2020

Abstract

This article examines the empirical incidence of the private and public enforcement of disclosure laws in Australia. Disclosure laws aim to ensure the reduction of information asymmetries and the accuracy of share prices, but their success is predicated on enforcement. In order to assess the enforcement landscape, this article presents two new datasets comprising both private class actions (including whether litigation funding is in place) and public enforcement for further examination. In light of these findings, this article addresses the question of whether the Australian system of enforcement is effective, by reference to whether the enforcement actions compensate, deter, and signal. Overall, the empirical analysis confirms the signalling function of enforcement, shows that there is likely to be a reasonable degree of deterrence where directors are targeted, however, that the compensation rationale is not met. This results in a moderately effective enforcement framework with notable room for improvement across both modalities of enforcement.

Keywords: Public and Private Enforcement, Corporate Law, Deterrence, the Australian Securities and Investment Commission, Class Actions, Litigation Funding, Compensation

JEL Classification: G30, G38, K22, K41, K42, N20

Suggested Citation

Varzaly, Jenifer, The Effectiveness of Disclosure Law Enforcement in Australia (September 1, 2020). Forthcoming, Journal of Corporate Law Studies (Volume 21, 2021) , University of Cambridge Faculty of Law Research Paper No. 30/2020 , Available at SSRN: https://ssrn.com/abstract=3696309 or http://dx.doi.org/10.2139/ssrn.3696309

Jenifer Varzaly (Contact Author)

University of Cambridge - Faculty of Law ( email )

10 West Road
Cambridge, CB3 9DZ
United Kingdom

Durham University - Law School ( email )

50 North Bailey
Palatine Centre
Durham, County Durham DH1 3ET
United Kingdom

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
37
Abstract Views
176
PlumX Metrics