Junior Equity Market Regulation In Canada And Around The World [Podcast]

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Junior Equity Market Regulation In Canada And Around The World (Podcast) by Pat Light

Market regulation is a hot-button topic at the best of times, and the economic effects of specific regulations are very rarely completely understood. J. Ari Pandes and Michael J. Robinson, CFA, looked into market regulation for an article in the July/August 2014 issue of the Financial Analysts Journal, “Is Effective Junior Equity Market Regulation Possible?” Pandes and Robinson examined Canada’s Capital Pool Company (CPC) program, a regulated blind pool program. We talked with Robinson about the research he and Pandes conducted, as part of our FAJ Author Interview Series.

Robinson said that “there’s been a decline in the number of IPOs . . . around the world,” and he and Pandes wanted to investigate whether the Canadian approach to the problem could be applied globally. He said they analyzed the CPC program, which started in 1986 after a period in which Canadian companies were having trouble raising capital.

Pandes and Robinson looked at three main questions regarding the CPC:

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  1. Did the CPC regulations lower the amount of fraud?
  2. Did the quality of the firms going public increase after the regulations were put in place?
  3. Did the success of the firms listed through the CPC program increase?

To hear Robinson’s thoughts on the study’s outcomes, listen to the interview above or download the MP3.

CFA Institute members can read the full article on the Publications website.

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This was previously published on Enterprising Investor at the CFA Institute.
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Pat Light is an assistant editor at CFA Institute. Before joining the CFA Institute editorial staff, he worked as a teacher. Light has a BA in English from Duke University.

Please note that the content of this site should not be construed as investment advice, nor do the opinions expressed necessarily reflect the views of CFA Institute.

 

The CFA Institute Enterprising Investor blog is a forum for delivering practical analysis of current issues in finance and investing. The blog is written for investment professionals and aims to elevate the most interesting and compelling commentary and perspectives from the sea of opinions and research; to contextualize the many educational offerings of CFA Institute; and to provoke debate and an exchange of ideas among serious investment practitioners about topics of the day. The CFA Institute Market Integrity Insights blog is a forum for providing analysis and commentary on the integrity of global capital markets. From regulatory reform and corporate governance to insider trading and financial reporting, our content experts explore timely issues in financial regulation and other issues affecting the global capital markets. In addition, CFA Institute publishes a variety of blogs covering our live events programming around the world, including the CFA Institute Annual Conference, now in its 65th year; the European Investment Conference; the Middle East Investment Conference; and the Asia Pacific Investment Conference. Please note that the content of these blogs should not be construed as investment advice, nor do the opinions expressed necessarily reflect the views of CFA Institute.
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