Economic Analysis of Securities Market Regulation

Author: Long Chao
Publisher:
Publish Date: 2003-12-01
Features: This book proposes that the high incompleteness of securities law is closely related to the failure of the securities market, hence it is necessary to conduct an in-depth analysis of the causes of securities market failure. While information asymmetry distribution is indeed an important aspect of the causes of securities market failure, it is widely present in other market structures and does not adequately reflect the reasons for securities market failure. The introduction of regulation can optimize the institutional mechanisms of securities market legislation and enforcement, thereby significantly improving the efficiency of the institutional system in preventing and punishing securities market harmful behaviors. Another innovative contribution of this book is to distinguish the types of securities market regulation based on observations of regulatory experience phenomena into legal regulation, administrative regulation, self-regulation, and media supervision. It clearly proposes the view that administrative regulation of the securities market also has inherent incompleteness, thereby explaining the significance of self-regulation and media supervision in securities market regulation. It further develops a structural theory of securities market regulation and establishes a simple securities regulation structure model, conducting an in-depth analysis of the predator functions and naive relationships of each component in a reasonable securities regulation structure. It separately discusses the local equilibrium of legal regulation and administrative regulation, as well as the general conditions for achieving overall equilibrium in the regulatory structure. The book is divided into 6 chapters, with the main content including: early theories of government regulation of the economy; the development of theories of government regulation of the economy; the theory of legal incompleteness and financial market regulation; an analysis of the causes of securities market regulation; a structural analysis of securities market regulation; and the structural defects and reform paths of securities market regulation in China.