Florencio López-de-Silanes on the Best Way to Punish Corporate Criminals
Professor Florencio López-de-Silanes' paper, "What Works in Securities Laws?" received hundreds of downloads after a Slate.com (9/24) story on the best way to punish corporate criminals linked directly to it. The study, co-authored by Rafael La Porta (Dartmouth) and Andrei Shleifer (Harvard), examines the effect of securities laws on stock market development in 49 countries. Slate.com writer Daniel Gross wrote, "Their conclusion is surprising-and surprisingly practical. What works best, it turns out, is a combination of mandated disclosure (thus allowing the markets to work their efficient magic) and the ability of plaintiffs' lawyers to sue the hell out of corrupt CEOs and underwriters. In short, a more private system."