Financial impact of regulatory sanctions on listed companies
The result's identifiers
Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216208%3A11230%2F20%3A10409760" target="_blank" >RIV/00216208:11230/20:10409760 - isvavai.cz</a>
Result on the web
<a href="https://verso.is.cuni.cz/pub/verso.fpl?fname=obd_publikace_handle&handle=QEZ4G.a9Mb" target="_blank" >https://verso.is.cuni.cz/pub/verso.fpl?fname=obd_publikace_handle&handle=QEZ4G.a9Mb</a>
DOI - Digital Object Identifier
<a href="http://dx.doi.org/10.1007/s10657-019-09638-1" target="_blank" >10.1007/s10657-019-09638-1</a>
Alternative languages
Result language
angličtina
Original language name
Financial impact of regulatory sanctions on listed companies
Original language description
We examine the impact of the enforcement of financial regulations by the French Financial Market Authority on sanctioned firms. The early stages of the enforcement process are by law confidential, with an internal investigation and bilateral exchanges between the defendant and its regulator. The public hearing by the Enforcement Committee leads to a single publication of the decision, being the only public communication. Using an event study methodology, we find that the confidentiality of the initial steps of enforcement procedures is respected and that markets account for the publication of sanctions. Still, reactions are limited in absolute and relative terms, both compared to past studies and in terms of reputational penalty. Some parameters trigger a stronger reaction, but not the most straightforward (such as the cash fine or behavioral sanction). The results echo the reputation for leniency of sanctions (scarce procedures, lax verdicts, low fines, ending neglected by analysts and investors), despite consecutive regulatory tightenings and long procedures. They question the efficiency of enforcement.
Czech name
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Czech description
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Classification
Type
J<sub>imp</sub> - Article in a specialist periodical, which is included in the Web of Science database
CEP classification
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OECD FORD branch
50201 - Economic Theory
Result continuities
Project
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Continuities
S - Specificky vyzkum na vysokych skolach
Others
Publication year
2020
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Name of the periodical
European Journal of Law and Economics
ISSN
0929-1261
e-ISSN
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Volume of the periodical
49
Issue of the periodical within the volume
2
Country of publishing house
NL - THE KINGDOM OF THE NETHERLANDS
Number of pages
37
Pages from-to
301-337
UT code for WoS article
000516930600001
EID of the result in the Scopus database
2-s2.0-85080862172