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    Law enforcement spillover effects in the financial sector.

    Agarwal, Shivam and B. Muckley, Cal (2022) Law enforcement spillover effects in the financial sector. European Financial Management, 28 (5). pp. 1477-1504. ISSN 1354-7798

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    Recipient firms but also comparable peer firms exhibit asizeable negative capital market reaction to UnitedKingdom's regulatory enforcement actions. This result isinvariant to the identification of peer firms as belongingto the same industry classification or as having com-parable propensity scores to attract a sanction. Indis-criminate regulatory contagion, however, is ruled out.As per expectation, enforcement actions which piercethe‘corporate veil’, that is, target an individual within afirm, are related to no significant firm‐level market re-actions. These findings, in the financial sector, indicatethat sanctions are associated with a material spillovereffect consistent with informed regulatory contagion.

    Item Type: Article
    Keywords: abnormal stock returns; enforcement actions; peer firm effects; regulatory risk;
    Academic Unit: Faculty of Social Sciences > School of Business
    Item ID: 17129
    Identification Number:
    Depositing User: Shivam Agarwal
    Date Deposited: 02 May 2023 10:10
    Journal or Publication Title: European Financial Management
    Publisher: Wiley
    Refereed: Yes
    Use Licence: This item is available under a Creative Commons Attribution Non Commercial Share Alike Licence (CC BY-NC-SA). Details of this licence are available here

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