Law enforcement spillover effects in the financial sector
研究发现英国监管执法行动不仅影响受罚公司，还波及同行业可比公司，导致资本市场负面反应，但并非无差别传染，且针对个人的执法无显著市场反应。
Abstract Recipient firms but also comparable peer firms exhibit a sizeable negative capital market reaction to United Kingdom's regulatory enforcement actions. This result is invariant to the identification of peer firms as belonging to the same industry classification or as having comparable propensity scores to attract a sanction. Indiscriminate regulatory contagion, however, is ruled out. As per expectation, enforcement actions which pierce the ‘corporate veil’, that is, target an individual within a firm, are related to no significant firm‐level market reactions. These findings, in the financial sector, indicate that sanctions are associated with a material spillover effect consistent with informed regulatory contagion.