ENFORCEMENT Part One CAI Mengqi 5/30/2014
Part One CAI Mengqi 5/30/2014 ENFORCEMENT
Enforcement Investor protection requires both law and the effective enforcement of law. Academic research underscores the importance of enforcement. Page·2
Page 2 Enforcement Investor protection requires both law and the effective enforcement of law. Academic research underscores the importance of enforcement
Division of Public Enforcement and Private Enforcement Public enforcement is usually defined by a system in which the law enforcers will investigate violations and prosecute violators as government employees. Under private enforcement,private individuals and firms would investigate violations,apprehend violators,and conduct legal proceedings to redress violations. Page3
Page 3 Division of Public Enforcement and Private Enforcement Public enforcement is usually defined by a system in which the law enforcers will investigate violations and prosecute violators as government employees. Under private enforcement, private individuals and firms would investigate violations, apprehend violators, and conduct legal proceedings to redress violations
Relative Value of Public Enforcement and Private Enforcement Becker and Stigler Landes and Posner ■LLS Howell E.Jackson and Mark J.Roe Reference: Becker,G.S.,Stigler,G.J.(1974).Law enforcement,malfeasance,and compensation ofenforces. Landes,W.M.,Posner,R.(1974).The private enforcement of law. Porta,R.,Lopez-de-Silanes,F.,&Shleifer,A.(2006).What works in securities laws?. Jackson,H.E.,Roe,M.J.(2009).Public and private enforcement of securities laws:Resource- based evidence. Page4
Page 4 Relative Value of Public Enforcement and Private Enforcement Becker and Stigler Landes and Posner LLS Howell E.Jackson and Mark J.Roe Reference: Becker, G. S., & Stigler, G. J. (1974). Law enforcement, malfeasance, and compensation of enforces. Landes, W. M., & Posner, R. (1974). The private enforcement of law. Porta, R., Lopez-de-Silanes, F., & Shleifer, A. (2006). What works in securities laws?. Jackson, H. E., & Roe, M. J. (2009). Public and private enforcement of securities laws: Resource- based evidence
Relative Value of Public Enforcement and Private Enforcement Becker and Stigler In the public enforcement,the enforcer is rewarded by a fixed,flat wage. o The essence of private enforcement is compensation of enforcers on performance,or by a piece-rate or a bounty, instead of by a straight salary. Page5
Page 5 Relative Value of Public Enforcement and Private Enforcement Becker and Stigler In the public enforcement, the enforcer is rewarded by a fixed, flat wage. The essence of private enforcement is compensation of enforcers on performance, or by a piece-rate or a bounty, instead of by a straight salary