A weak law is an opportunity missed. A study by academics at Indiana University in the US shows that the cost of capital in markets with a strong insider-dealing regime can be 5% lower than in those without.
Conviction rates for insider dealing in Europe are dismal. In the UK, for example, only 12 convictions have been secured against insider dealers during the past five years. Across the entire EU, there were only 19 convictions in the years 1995 to 2000.
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