Investor Protection, Optimal Incentives, and Economic Growth

Financial crisis of 2008 and the ongoing pandemic are continuing to have a negative impact on the economies of all countries even tough interest rates have been decreased significantly. This paper attempted to view the problem from a micro point of view to suggest more effective incentives for growth. The specific objective of the study is to determine and examine the effects of these incentives on economic growth in Central European countries.

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Part V The Broader View and the Future of MiFID, 23 Investment-Based Crowdfunding: Is MiFID II Enough?

10.1093/law/9780198767671.003.0023 ◽

2017 ◽

Author(s):

Ferrarini Guido ◽

Macchiavello Eugenia

Keyword(s):

Economic Growth ◽

Investor Protection ◽

National Level ◽

Member States ◽

Trade Off ◽

Regulatory Issues ◽

Retail Investors ◽

The Future ◽

The Uk ◽

The Eu

This chapter explores the policy and regulatory issues generated by investment-based crowdfunding in Europe. Firstly, it argues that crowdfunding raises serious investor protection concerns, particularly when directed to retail investors. As governments try to stimulate innovation and the formation of new enterprises, a trade-off is created between investor protection and economic growth. The laws of the EU and its Member States try to solve this trade-off in different ways, as the chapter shows with reference to MiFID and the laws of the UK, France, Italy, Spain and Germany. Secondly, it shows that MiFID II, while enhancing investor protection and furthering harmonization, does not create all the conditions needed for a pan-European crowdfunding market. At the same time, MiFID II narrows the potential for exemptions under which some Member States have adopted special regimes for crowdfunding, therefore restricting the scope for an enabling approach to investment-based crowdfunding at national level.

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Investor Protection, Equity Markets and Economic Growth in Emerging Economies: A Study of the Bullish Period between 2003 and 2007

SSRN Electronic Journal ◽

10.2139/ssrn.1728084 ◽

2010 ◽

Author(s):

Gabriel Geller

Keyword(s):

Economic Growth ◽

Emerging Economies ◽

Investor Protection ◽

Equity Markets

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The Role of the Future in Law and Finance

Journal des Économistes et des Études Humaines ◽

10.1515/jeeh-2017-0007 ◽

2017 ◽

Vol 23 (2) ◽

Cited By ~ 1

Author(s):

Alessio M Pacces

Keyword(s):

Economic Growth ◽

Investor Protection ◽

Financial Assets ◽

Law And Finance ◽

Access To Finance ◽

Long Run ◽

Significant Harm ◽

The Future ◽

Short Run

AbstractThe success of a capitalist economy rests upon the ability of finance to sustain potentially infinite growth, based on funding today the output of tomorrow. Finance, however, needs rules. The aim of the law and finance scholarship is precisely to identify the best regulation of finance to support economic growth. Traditionally, law and finance is concerned with investor protection. This would be sufficient if the future were predictable. However, because the future is uncertain, the prices of financial assets are flawed and in the short run they may result in serious mistakes, if not widespread crises. Although these mistakes are corrected in the long run, significant harm may occur in the meantime. Financial law should therefore be concerned not only with investor protection, but also with mitigating the temporary excesses of markets in allowing or restricting access to finance. The challenge of this goal is to remedy market myopia without allowing policymakers to abuse the power of governments. However imperfect, prices remain the best instrument of discipline and growth in a market economy.

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