Regulatory economics studies, in general, the economics of regulation. In the context of finance, it will address the impact of financial regulation on the functioning of markets and the efficiency of prices, while also weighing the corresponding increases in market confidence and financial stability. Research here considers how, and to what extent, regulations relating to disclosure (earnings guidance, annual reports), insider trading, and short-selling will impact price efficiency, the cost of equity, and market liquidity.See for example: Hazem Daouk, Charles M.C. Lee, David Ng. (2006). "Capital Market Governance: How Do Security Laws Affect Market Performance?". Journal of Corporate Finance, Volume 12, Issue 3; Emilios Avgouleas (2010). "The Regulation of Short Sales and its Reform" DICE Report, Vol. 8, Iss. 1.
Regulatory economics studies in general the economics of regulation In the context of finance it will address the impact of financial regulation on the functioning of markets and the efficiency of prices while also weighing the corresponding increases in market confidence and financial stability Research here considers how and to what extent regulations relating to disclosure (earnings guidance annual reports) insider trading and short-selling will impact price efficiency the cost of equity and market liquiditySee for example Hazem Daouk Charles MC Lee David Ng (2006) "Capital Market Governance How Do Security Laws Affect Market Performance" Journal of Corporate Finance Volume 12 Issue 3; Emilios Avgouleas (2010) "The Regulation of Short Sales and its Reform" DICE Report Vol 8 Iss 1