Investor protection Research Papers - Academia.edu (original) (raw)

This paper examines market reaction to international dual listings. The sample consists of the only six (6) firms that cross-listed their equity abroad and which are also listed in the Nigerian Stock Exchange. The market reaction to a... more

This paper examines market reaction to international dual listings. The sample consists of the only six (6) firms that
cross-listed their equity abroad and which are also listed in the Nigerian Stock Exchange. The market reaction to a cross-listing program is positive and seen as a welcoming development to the selected companies and their shareholders at large. The stock price reaction is related to choice of exchange, geographical location (i.e. emerging or developed markets), and avenues for raising equity capital (i.e., public versus private offerings).

Das europäische Recht der laufenden Bankaufsicht bezweckt neben dem Systemschutz zunehmend auch den Schutz individualisierbarer Kundengruppen, insbesondere der Einleger, Anleger und Verbraucher. Derzeit werden diese vor allem durch... more

Das europäische Recht der laufenden Bankaufsicht bezweckt neben dem Systemschutz zunehmend auch den Schutz individualisierbarer Kundengruppen, insbesondere der Einleger, Anleger und Verbraucher. Derzeit werden diese vor allem durch öffentlich-rechtliche Instrumente wie die Bankaufsicht der BaFin und EZB oder die gesetzliche Einlagensicherung geschützt, während ein privatrechtlicher Schutz nur punktuell besteht. In Anlehnung an die unionsrechtlichen Modelle des Wettbewerbs- und Kapitalmarktrechts untersucht Nikolai Badenhoop, ob und wie bankaufsichtsrechtliche Ziele und Pflichten mit Mitteln des Privatrechts durchgesetzt werden können. Das aufsichtsrechtliche Systemschutzziel beeinflusst durch die Pflicht zum Risikomanagement vor allem das Gesellschaftsrecht. Das Individualschutzziel spielt für die Vertragsauslegung und Schadensersatzansprüche im Kundenkontakt eine besondere Rolle. Da das europäische Bankaufsichtsrecht flächendeckend Individualschutzziele verfolgt, plädiert der Autor für eine unionsrechtskonforme Auslegung des Vertrags- und Deliktsrechts und damit für eine stärkere privatrechtliche Durchsetzung.

The Fair and Equitable Treatment (FET) standard in international investment law has become an indispensable tool for the foreign investors to bring claims against host countries. These claims largely relates to sectors which are directly... more

The Fair and Equitable Treatment (FET) standard in international investment law has become an indispensable tool for the foreign investors to bring claims against host countries. These claims largely relates to sectors which are directly linked with the sustainable development of these host countries. Considering the importance of the concept and the commitment of the global community to enhance sustainable development objectives the aim of this article is to examine the aspects of sustainable development as one of the principle to interpret the FET standard. Accordingly it will analyse how the principle of FET and sustainable development relate to each other on conceptual founding. It will analyse some arbitral awards to examine how the current investment tribunals have interpreted the FET clause as an expression of sustainable development objective and how far the FET standard contained in the treaties are compatible with the ideas of sustainable development. The article concludes with a view that the integrative flexibility of FET provides the arbitrators with an ample opportunity to take a comprehensive approach in balancing the interests of foreign investors and host countries with regard to their wider implications on sustainable development.

La crisi dell impresa bancaria è tradizionalmente ritenuta meritevole di par- ticolare attenzione da parte del legislatore, in quanto può finire per esporre non solo coloro che sono direttamente in relazione con la banca in difficoltà, ma... more

La crisi dell impresa bancaria è tradizionalmente ritenuta meritevole di par- ticolare attenzione da parte del legislatore, in quanto può finire per esporre non solo coloro che sono direttamente in relazione con la banca in difficoltà, ma anche l intero sistema economico-finanziario in cui quest ultima opera al rischio di ripercussioni così gravi da determinare perdite insostenibili. L ultimo decennio ha messo a dura prova la capacità di molte economie di reggere le conseguenze finanziarie di una delle più grandi insolvenze della storia recente e, cioè, della crisi che emerse alla metà del settembre 2008 in capo al gruppo bancario-finanziario Lehman Brothers. Proprio in considera- zione delle difficoltà nel contenere quelle conseguenze, non soltanto a livello microe- conomico ma anche a quello macroeconomico, i governi di molti paesi così come le principali istituzioni con responsabilità di disciplina dei mercati finanziari hanno in seguito compiuto una pluralità di interventi sulla regolamentazione. Uno dei problemi fondamentali è stato individuato nell attitudine della crisi di un intermediario — se non già della sua insolvenza — ad essere trasmessa ad altri, tramutando anche rapidamente una difficoltà individuale in crisi di sistema. Nel quadro così sintetizzato, che ha registrato non solo l insolvenza di grandi gruppi bancario-finanziari privati (3), ma anche la crisi di ccdd. debitori sovrani, plurimi sono stati gli interventi nel triennio 2008-2010 per salvare attività bancarie e/o assicu- rative, evitare danni o indennizzare clienti e risparmiatori di queste, proteggere — più in generale — economie di intere aree geografiche dalla comunicazione delle difficoltà anche ad altri settori merceologici. La disciplina delle crisi bancarie è stato ritenuto che meritasse deviazioni dai modelli di trattamento delle insolvenze e delle pre-insolvenze delle altre imprese anche quando la dimensione dell impresa in dissesto (o prossima a questo) fosse minore. I contenziosi decisi dal Tribunale di Milano e dall Arbitro per le Controversie Finanziarie, che scaturirono dalle pretese avanzate da numerosi azionisti, ne sono un esempio degno di discussione poiché le decisioni assunte da chi ha giudicato presentano taluni profili di criticità

International arbitration and, particularly, investor-state arbitration is rapidly shifting to include disputes of a public law nature. Yet, arbitral tribunals continue to apply standards of review derived from the private law origins of... more

International arbitration and, particularly, investor-state arbitration is rapidly shifting to include disputes of a public law nature. Yet, arbitral tribunals continue to apply standards of review derived from the private law origins of international arbitration, have not recognized the new public law context of these disputes, and have failed to develop a coherent jurisprudence with regard to the applicable standard for reviewing a state's public regulatory activities. This problematic approach is evidenced by a recent series of cases brought by foreign investors against Argentina challenging the economic recovery program launched after a massive financial collapse and has called into question the legitimacy of investor-state arbitration more generally. A comparative analysis of public law standards of review from both other international courts and the domestic systems of the U.S. and Germany demonstrates that arbitral tribunals have a variety of standards of review from whi...

The Financial Services and Markets Act 2000

There are various constructions of the ‘Fair and Equitable Treatment’ (FET) clauses in investment treaties. Many of them have combined the FET standard with other investment protection standards in the same clause. A simplistic... more

There are various constructions of the ‘Fair and Equitable Treatment’ (FET) clauses in investment treaties. Many of them have combined the FET standard with other investment protection standards in the same clause. A simplistic interpretation of these clauses might lead to an understanding that the FET standard are synonymous with other standards prescribed by the particular investment treaties largely due to the flexibility and generality of the standard. This article will closely scrutinize this interrelation between the FET standard with some other investment protection standards. The demarcation line between and among these interaction is so thin that it becomes difficult to distinguish one standard from another. This article will discuss that the FET is indeed an overarching principle and despite some conceptual similarities with other investment protection standards the FET standard is unique and distinct in its own free standing in the international investment law regime and combining the standard with other investment protection standards is simply a stylistic matter and not a matter of substance to its content.

The study examined the impact of sound corporate governance on economic growth in an emerging market, Zimbabwe, using an econometric model. A multiple linear regression analysis was employed to examine the relationship. Secondary data for... more

The study examined the impact of sound corporate governance on economic growth in an emerging market, Zimbabwe, using an econometric model. A multiple linear regression analysis was employed to examine the relationship. Secondary data for the period from 1968 to 2015 was collected from World Bank's Worldwide Governance and World Development Indicators databases. It was found that sound corporate governance is significantly related to economic growth in an emerging market, Zimbabwe, in a positive and negative manner with a P = 0.000023235 at 5% level of confidence. On one hand, control of corruption is negatively significantly related to economic growth and on the other hand political stability and absence of violence/ terrorism positively significantly related to economic growth. Government effectiveness, regulatory quality, rule of law and voice and accountability are insignificant in influencing economic growth in Zimbabwe at 5% level of significance. The findings from this article will assist policy formulation, policy implementation and future research. This article, however, is of great importance to government, private sector and the academia.

Abstract: When threatened by crises such as global terrorism, financial collapse, pandemic diseases, and natural disasters, states may resort to measures that harm the interests of foreign investors protected under the bilateral... more

Abstract: When threatened by crises such as global terrorism, financial collapse, pandemic diseases, and natural disasters, states may resort to measures that harm the interests of foreign investors protected under the bilateral investment treaty (BIT) regime. Many such ...

The financial sector has faced a true regulatory avalanche since the financial crisis. The field of investor protection legislation has not escaped. This article takes a step back and structures the multitude of new rules with respect to... more

The financial sector has faced a true regulatory avalanche since the financial crisis. The field of investor protection legislation has not escaped. This article takes a step back and structures the multitude of new rules with respect to investor protection – both at national and EU level – into three “building blocks of investor protection”: (i) product information requirements; (ii) services quality requirements (conduct of business rules); and (iii) product regulation. By doing so clear trends emerge.
First, this contribution shows that although over the last decades severe criticism has impaired confidence in the traditional “information paradigm” as an investor protection solution, the paradigm is far from buried. It remains an important pillar of investor protection, although it has been fine-tuned and adapted to certain law and economics and behavioural finance insights.
Second, the information paradigm has been supplanted with newer types of investor protection. Conduct of business rules, emphasizing the role of services providers in the investment process, become ever more detailed and encompassing.
Third, a new trend – and indeed paradigm shift – emerges. Until recently product regulation was virtually inexistent; today three different types of product regulation can be distinguished: (i) product quality requirements; (ii) regulation of the product design process; and (iii) outright product bans. Each of those measures prohibit or impede access to certain financial products by (categories of) investors. Whereas less than a decade ago such measures were unheard of in the financial sector, the crisis has matured thinking in this direction. Today outright product banning has been institutionalized at EU level and can be considered the backstop of EU investor protection legislation.
The author concludes the contribution with an evaluation of the current state of play and an indication of remaining challenges in the field of investor protection legislation.

The JOBS Act of 2012 reflects the largest deregulatory change to the Securities Exchange Act of 1934 over its more than 75 year history. It contracts the coverage of those companies subject to the obligations of ‘publicness” and it... more

The JOBS Act of 2012 reflects the largest deregulatory change to the Securities Exchange Act of 1934 over its more than 75 year history. It contracts the coverage of those companies subject to the obligations of ‘publicness” and it introduces an “on ramp” that will permit most newly-public companies to meet a lesser set of disclosure, internal control and governance obligations for up to five years. We set these changes against a larger discussion of when a private enterprise should be forced to take on public status in securities regulation, a topic that has been entirely under theorized. We conclude that the change from 500 to 2000 shareholders of record made by the JOBS Act, while entirely clear in its deregulatory thrust, misses a key point: “record” ownership is an antiquated metric for any measuring of publicness and Congress needs to find a better one, such as public trading. More broadly, we observe that Congress increasingly has defined public obligations in securities regu...

An emerging "bonding hypothesis" holds that a firm's geographic domicile may not determine its corporate governance destiny. Firms from countries with weaker corporate governance regimes can internationalize their legal (but... more

An emerging "bonding hypothesis" holds that a firm's geographic domicile may not determine its corporate governance destiny. Firms from countries with weaker corporate governance regimes can internationalize their legal (but not necessarily operational) presence by cross-listing their securities on overseas financial markets. They can "bond" with legal systems and enforcement policies in foreign corporate governance regimes providing stronger investor protection.