Paper on deregulating financial markets wins best paper award

June 1 2022

Prof. Dr. Michael Erkens, Professor of Financial Reporting at Nyenrode Business University and Erasmus School of Economics, and Prof. Dr. Ying Gan, Associate Professor of Financial Accounting at Erasmus School of Economics, won the Best Paper Award at the American Accounting Association's Southeast Region Meeting in Orlando (United States) for their paper "Rolling back Dodd-Frank: Investors' and Banks' Responses to Financial Market Deregulation".

Erkens and Gan study shareholders' and banks' reactions to events related to the roll-back of Dodd-Frank regulations in the United States. They document favorable responses for smaller banks to the easing of financial rules, as evidenced by increases in firm value, improvements in capital strength and accounting performance, expansion of lending activities, and increases in external financing. Erkens' and Gan's work is of high practical relevance and contributes to the ongoing debate about the pros and cons of regulatory oversight. Their study informs regulators, standard setters, and practitioners about the effects of a meaningful reduction in regulatory burden and compliance costs. 

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