Financial Market Misconduct and Public Enforcement: The Case of Libor Manipulation
利用2001至2012年Libor报价数据，发现银行操纵利率以获利或显示信用，但2010年调查后操纵消失，表明严厉处罚和声誉损失能有效遏制市场不当行为。
Using comprehensive data on London Interbank Offer Rate (Libor) submissions from 2001 through 2012, we provide evidence consistent with banks manipulating Libor to profit from Libor-related positions and to signal their creditworthiness during distressed times. Evidence of manipulation is stronger for banks that were eventually sanctioned by regulators and disappears for all banks in the aftermath of the Libor investigations that began in 2010. Our findings suggest that the threat of large penalties and the loss of reputation that accompany public enforcement can be effective in deterring financial market misconduct. This paper was accepted by Adams, Renee, finance.