How stricter financial-reporting enforcement can hurt shareholders
Even when transparency improves, the costs may outweigh the benefits to shareholders.
Restricting short selling raises default risks
Regulations reining in short-sellers can raise the price of credit.
Want households to invest more in stocks? Strengthen regulation
Regulation can increase confidence in financial markets.
Increased enforcement can drive down stock values
In some cases, the costs of increased transparency outweigh the benefits.