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Measuring the Impact of Regulation on Market Stability: Evidence from the US Markets

Abstract: In this paper, we introduce a new methodology designed to test the effect of new regulatory disclosure requirements on the disclosure threshold as predicted by the extant literature (Verrecchia (1983), Dye (1985)). We apply our methodology to test the consistency between observed effects from major US regulation past and present (1933/1934 Securities Acts, Regulation Fair Disclosure 2000, and the Sarbanes-Oxley Act 2002) with regulatory objectives.

Published on 5 September 2011
Authors Colin Beardsley
John O'Brien
Series Reference 2004-03