Found 584 article(s) in category 'Regulation'

Stock Splits to Profit Insider Trading: Lessons from an Emerging Market

Stock Splits to Profit Insider Trading: Lessons from an Emerging Market. Richard Zeckhauser, February 28, 2017, Paper, “Stock splits have long presented financial puzzles: Why are they undertaken? Why are they associated with abnormal returns? Abnormal returns, particularly those coming shortly before a split’s announcement date, should raise strong suspicions of insider trading, particularly in nations with weak regulatory structures. We examined the 718 split events in the emerging stock market of Vietnam from 2007 through 2011. We found evidence consistent with illegal insider trading, particularly in firms that were vulnerable to insider manipulation and, therefore, more likely to split their stocks. When vulnerable firms’ stocks did split, they provided significant excess short-term returns.Link

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Larry Summers is worried about ‘enormous damage’ to the economy

Larry Summers is worried about ‘enormous damage’ to the economy. Lawrence Summers, February 27, 2017, Video, “Former Treasury Secretary Larry Summers had strong words for the economic policies and the rhetoric coming from the Trump Administration. In a wide-ranging interview in his offices at Harvard University, Summers called the new administration’s pronouncements on trade for instance “wildly irresponsible” and “potentially very dangerous.” ” Link

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Land Institutions and Chinese Political Economy – Institutional Complementarities and Macroeconomic Management

Land Institutions and Chinese Political Economy – Institutional Complementarities and Macroeconomic Management. Meg Elizabeth Rithmire, February 22, 2017, Paper, “This article critically examines the origins and evolution of China’s unique land institutions and situates land policy in the larger context of China’s reforms and pursuit of economic growth. It argues that the Chinese Communist Party (CCP) has strengthened the institutions that permit land expropriation—namely, urban/rural dualism, decentralized land ownership, and hierarchical land management—in order to use land as a key instrument of macroeconomic regulation, helping the CCP respond to domestic and international economic trends and manage expansion and contraction.Link

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Regulations have costs, benefits

Regulations have costs, benefits. Joseph Aldy, February 16, 2017, Opinion, “President Trump jettisoned more than 30 years of bipartisan regulatory policy on January 30 when he issued an executive order on “Reducing Regulation and Controlling Regulatory Costs.” The order requires that whenever a new regulation is enacted by any federal agency, regulators must eliminate two rules so that the cost of complying with the new rule is offset by the costs associated with the two existing rules. But Trump misses a crucial point about government regulations: They impose costs on society, but they also produce benefits.Link

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The Evolution of Environmental Economics: A View from the Inside

The Evolution of Environmental Economics: A View from the Inside. Robert Stavins, 2017, Paper, “This essay provides one economist’s perspective on the two-decade evolution of the field of environmental economics, by tracing it through personal reflections on the professional path that has led to my research and writing. Also, the article summarizes the highlights of some of my research and writing during this period.Link

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Global Citizens, National Shirkers

Global Citizens, National Shirkers. Dani Rodrik, February 10, 2017, Opinion, “Last October, British Prime Minister Theresa May shocked many when she disparaged the idea of global citizenship. “If you believe you’re a citizen of the world,” she said, “you’re a citizen of nowhere.” Her statement was met with derision and alarm in the financial media and among liberal commentators. “The most useful form of citizenship these days,” one analyst lectured her, “is one dedicated not only to the well-being of a Berkshire parish, say, but to the planet.” The Economist called it an “illiberal” turn. A scholar accused her of repudiating Enlightenment values and warned of “echoes of 1933” in her speech.Link

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The Truth About Blockchain

The Truth About Blockchain. Karim Lakhani, January/February 2017, Paper, “The technology at the heart of bitcoin and other virtual currencies, blockchain is an open, distributed ledger that can record transactions between two parties efficiently and in a verifiable and permanent way. The ledger itself can also be programmed to trigger transactions automatically. With blockchain, this article can imagine a world in which contracts are embedded in digital code and stored in transparent, shared databases, where they are protected from deletion, tampering, and revision. In this world every agreement, every process, every task, and every payment would have a digital record and signature that could be identified, validated, stored, and shared. This is the immense potential of blockchain. Although this article shares the enthusiasm for its potential, it worries about the hype.Link

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Cloaked Trading

Cloaked Trading. Lauren Cohen, Christopher Malloy, January 17, 2017, Paper, “Using a novel, proprietary database of micro-level trading activities by asset managers, we show strong evidence of asset managers engaging in strategic trading in order to “cloak” their most valuable trades. This takes the form, for instance, of a manager who sells her entire position of Microsoft on March 30, and then repurchases to re-establish the same position on April 1. This manager will economically be holding the same position throughout, yet without having to publicly signal this position. These cloaked trades earn an abnormal return of 370 basis points in the following month, or over 36% per year.Link

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