Instefjord, N and Frantz, P (2018) Regulatory Competition and Rules/Principles Based Regulation. Journal of Business Finance and Accounting, 45 (7-8). pp. 818-838. DOI https://doi.org/10.1111/jbfa.12313
Instefjord, N and Frantz, P (2018) Regulatory Competition and Rules/Principles Based Regulation. Journal of Business Finance and Accounting, 45 (7-8). pp. 818-838. DOI https://doi.org/10.1111/jbfa.12313
Instefjord, N and Frantz, P (2018) Regulatory Competition and Rules/Principles Based Regulation. Journal of Business Finance and Accounting, 45 (7-8). pp. 818-838. DOI https://doi.org/10.1111/jbfa.12313
Abstract
This paper analyses how regulatory competition affects principles based and rules based systems of regulation. Competition between regulators creates the possibility of regulatory arbitrage that generates a race to the bottom by regulators that is socially harmful. We derive the welfare effects of such competition and the regulatory responses to these effects, in particular, regulatory harmonisation. These effects can make coordination efforts in developing global regulation socially desirable. We demonstrate, moreover, that corporate lobbying is not always harmful: it can both encourage and discourage socially desirable regulation.
Item Type: | Article |
---|---|
Uncontrolled Keywords: | Corporate lobbying; Principles based regulation; Regulatory arbitrage; Regulatory harmonisation; Rules based regulation |
Subjects: | H Social Sciences > HF Commerce > HF5601 Accounting H Social Sciences > HG Finance |
Divisions: | Faculty of Social Sciences Faculty of Social Sciences > Essex Business School |
SWORD Depositor: | Unnamed user with email elements@essex.ac.uk |
Depositing User: | Unnamed user with email elements@essex.ac.uk |
Date Deposited: | 08 Feb 2018 14:24 |
Last Modified: | 16 May 2024 19:18 |
URI: | http://repository.essex.ac.uk/id/eprint/21392 |
Available files
Filename: FinRegFullR3.pdf