EC Reforms of Corporate Governance and Capital Markets Law: Do They Tackle Insiders' Opportunism?

Enriques, Luca; Gatti, Matteo

doi:10.2139/ssrn.886345

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EC Reforms of Corporate Governance and Capital Markets Law: Do They Tackle Insiders' Opportunism?

33 Pages Posted: 2 Mar 2006 Last revised: 13 Feb 2015

See all articles by Luca Enriques

Luca Enriques

Bocconi University - Bocconi Law Department; University of Oxford - Faculty of Law; European Corporate Governance Institute (ECGI)

Matteo Gatti

Rutgers, The State University of New Jersey - Rutgers Law School; European Corporate Governance Institute (ECGI)

Date Written: June 30, 2006

Abstract

We provide an overview of the numerous corporate governance and securities reforms enacted or currently discussed by the European Community. After identifying the drivers of these policy initiatives, we separately describe the measures enacted to implement the Financial Services Action Plan, those ensuing from major US and European corporate scandals, that in many respects emulate some of the Sarbanes-Oxley Act's provisions, and finally those aimed to modernise EU company law. Finally, we evaluate such initiatives in terms of their ability to curb insiders' (dominant shareholders) opportunism.

Keywords: Corporate Governance, Capital Markets, European Community, FSAP, Private Benefits of Control, Insiders' Opportunism, Investors' Protection

JEL Classification: G30, G34, K22, K42

Suggested Citation: Suggested Citation

Enriques, Luca and Gatti, Matteo, EC Reforms of Corporate Governance and Capital Markets Law: Do They Tackle Insiders' Opportunism? (June 30, 2006). Available at SSRN: https://ssrn.com/abstract=886345 or http://dx.doi.org/10.2139/ssrn.886345