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We investigate whether ownership structure influences the likelihood and amount of dividend payments in two groups of European Union's public companies: Nordic and Baltic. Nordic and Baltic capital markets have become increasingly integrated through Nasdaq OMX stock exchanges and harmonized by the EU corporate governance directives. However, some differences in the corporate governance system, legislation, practice, and ownership structure still exist. The study covers Nordic and Baltic companies listed on the Nasdaq OMX for the period 2013–2020. Logit and Tobit panel regressions are applied to disclose the effect of ownership structure on the likelihood and amount of dividend payments accordingly. We find that ownership concentration positively influences the likelihood and amount of dividend payments in Nordic public companies. Managerial ownership does not influence the likelihood of dividend payments but positively influences their amount. Institutional ownership does not influence the likelihood of dividend payments but negatively influences their amount. Our findings revealed that ownership structure does not have any effect either on the likelihood of dividend payments or on their amount in Baltic public companies. We disclosed that the effect of ownership structure on dividend payments is influenced by the context behind ownership structure. The results of our research will improve understanding and predict the decision-making on dividend payments and will help investors manage their portfolios, choosing between current and future consumption. [ABSTRACT FROM AUTHOR]

Theoretical background: According to many behavioural studies, emotions (e.g. fear, greed, overenthusiasm) strongly influence investment decisions and are one of the main sources of irrational behaviour. Purpose of the article: The study aims at investigating the impact of fear related to the COVID-19 crisis on sector indices on the stock market, in the face of anticipatory restrictions imposed by the authorities. The paper illustrates the investors’ decisions affected by fear. Research methods: The empirical study includes statistical analyses, in particular an analysis of the coefficient of variation. Main findings: The highest increase in the implied volatility index, which is used as a proxy of fear, is noted for the period of uncertainty (before the decisive reactions of government), during which, investors’ reactions are the most strongly related to fear and the negative sentiment affects all the sectors. [ABSTRACT FROM AUTHOR]

The study of investors' attention while making decisions in the capital market focuses on some specific keyword searches in the leading search engine platform, namely Google Search Volume Index. This is because investors need to gather related information for the efficiency and effectiveness of their decision-making process. This study aims to provide empirical evidence regarding the effect of investors' attention on the rate of return, trading activity, and volatility. It offers a new broad perspective on the international capital market, which is projected as the key player in the global economy in the upcoming years, representing both developing and developed countries. The GARCH model was applied to examine how volatile and residual variants are affected by previous residual variants of the variables. This study conducts robustness tests by expanding the scope time of data to enhance these research findings into weekly and monthly periods. The final robust, but not uniform, result was seen in one uncategorized country. [ABSTRACT FROM AUTHOR]

Purpose: This study mainly aims to explore the impact of management practices and managerial behavioral attributes on credit rating quality in Tehran Stock Exchange. Design/methodology/approach: In this study, 214 firms were assessed from 2014 to 2020. The credit rating quality was measured through Technique for Order of Preference by Similarity to Ideal Solution and the entropy weighting method. In accordance with the theoretical literature, managerial entrenchment, managerial myopia, managerial overconfidence and managerial narcissism were considered as the managerial attributes. Furthermore, to examine management practices, cash flow management and accrual management were explored. Findings: The results of this study showed that the cash flow from operations management and the accrual management has a significant positive effect on the credit rating quality. The managerial entrenchment, managerial narcissism and managerial myopia have significant negative effects on credit rating quality, while the effect of managerial overconfidence on credit rating quality is not significant. Originality/value: Understanding the factors that affect the credit rating quality is of a great importance. Considering the significance of cash management in the present era and the impact of managerial psychological and behavioral characteristics in the development of the organization, empirical results of this study can help investors, capital market regulators and other stakeholders to strengthen the firm and better decisions. [ABSTRACT FROM AUTHOR]

Copyright of Themis: Revista de Derecho is the property of Themis Asociacion and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Themis: Revista de Derecho is the property of Themis Asociacion and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The initial period of the COVID-19 pandemic and the outbreak of the Russian-Ukrainian war had a significant impact on financial markets. The aim of the work is to analyse the behaviour of selected segments of the Polish financial market in the initial period of the pandemic and war. The research is based on two measures of risk, relative and absolute. The research covers the period from 24 February 2022 to 22 August 2022. The research focuses on segments of the Warsaw Stock Exchange through the analysis of the following indices: WIG, WIG20, mWIG40, sWIG80, NCIndex, industry indices, and the TBSP treasury bond market index. The Warsaw Stock Exchange indices are also compared using variation coefficients and standard deviations with indices of selected world stock exchanges. After the start of the war, declines in the Warsaw Stock Exchange occurred with a delay of over a month. They can be linked to specific EU actions in the area of sanctions against Russia. Both risk measures indicate a similar response to the main indices, which can be interpreted as the high level of development of the Warsaw Stock Exchange, as compared to other stock exchanges. [ABSTRACT FROM AUTHOR]

Copyright of Journal of Development & Capital / Majallah-i tusiah & Sarmāyah is the property of Shahid Bahonar University of Kerman, Faculty of Management & Economics and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

IFRS are high-quality standards for uniformly reporting companies' financial information. The standards have become an accounting architecture for reporting of firms' performances across different countries. As a response to the numerous calls for businesses to disclose sustainabilitylinked information, the recently, the IFRS Foundation established the ISSB an task it with the responsibility to develop a truly baseline of sustainability information to inform investment and economic decisions in global capital markets. This paper is intended to review the IFRS accounting and its recent IFRS sustainability standards. The paper offers that in order for the standard to improve accounting quality and result in economic benefits the standards should support companies in reporting what attracts and support investor decision-making of investors across global markets as well as conduct periodic professional accounting trainings for companies on how to reflects recent modifications and designs on the financial statements. The contributions have important implications for reforms, regulations, and future research. Subsequent studies can use this discussion as a reference basis in related studies. [ABSTRACT FROM AUTHOR]

In today's economic environment, the many harms caused by financial fraud have attracted increased attention from academia and regulatory bodies alike. In the last two decades, marked by great crises, pandemics, financial fraud has affected to the global economy, being a threat for stability of the capital markets. The purpose of this study is to highlight the main aspects of the specialized literature on the subject of fraud risk, for its analysis and assessment. This study aims to obtain a financial profile of entities at risk of being subject to financial reporting fraud or asset misappropriation. The sample is represented by the entities listed on the BSE regulated market in the period 2020-2022. According to the object of activity, the analyzed entities are grouped as follows: chemical-pharmaceutical, tourism and services. In the study it is proposed the option of analyzing and assessment of fraud risk using quantitative and qualitative methods. [ABSTRACT FROM AUTHOR]

Given the current economic uncertainties in the capital market, there is a heightened need for quality audit engagements to maintain the credibility of financial statements and the trust of users. In these circumstances, it is important to use the best practices in order to carry out quality audit engagements, in accordance with professional standards. Aligned with the global push for accounting harmonization through IFRS adoption, our study evaluates how implementing IFRS impacts financial audit quality, focusing on auditor opinions and key audit matters. The research was carried out on a sample of companies listed on the Bucharest Stock Exchange, both in the main and AeRO segments, whose annual reports were studied for the period 2016-2022. Preliminary results reveal that the application of IFRS has a significant influence on the quality of financial audit in Romania in terms of audit opinion and key audit matters. [ABSTRACT FROM AUTHOR]

It is of great significance to improve the corporate governance structure to study whether independent directors play the role of 'vase' in the governance of listed companies. Based on the social network theory, this article constructs the social network formed by interlocking independent directors and examines the influence of independent director network on stock price crash risk. The mechanism test analyses the mediating effect of principal–agent problem and large shareholder's tunnelling on stock price crash risk. The empirical research shows that the higher the network centrality of the company's independent directors, the lower the stock price crash risk. The independent director network can restrain the company's stock price crash risk by reducing two types of agency costs. Further research finds that the influence of independent director network on stock price crash risk is more pronounced in companies with unreasonable ownership structure, poor internal governance and weak external supervision. The research conclusions have important implications for listed companies to reduce the risk of stock price crash and maintain the stability of the capital market. [ABSTRACT FROM AUTHOR]

The purpose of this research is to explore the impact of capital market opening on inefficient labour investment of enterprises and its impact path. This paper takes 2010–2019 A-share non-financial listed companies in Shanghai Stock Exchange (SSE) and Shenzhen Stock Exchange (SZSE) as research objects and samples, and uses DID method to examine the impact of capital market opening on labour investment efficiency of listed companies.We collected 22567 pieces of data.The results show that the capital market opening system significantly reduces inefficient labour investment of enterprises, mainly through reducing the information asymmetry and the agency costs as the main paths. This research shows that the capital market opening is of positive significance to the sustainable development of enterprises, and it proposes targeted suggestions for the government, listed companies and market investors to effectively reduce the inefficient labour investment of enterprises. The research provides more feasible references for capital market opening and corporate governance, and also offers theoretical evidence for the implementation of 'Shanghai-Hong Kong Stock Connect' program. [ABSTRACT FROM AUTHOR]

Deploying more than $65 billion in capital globally and with more than 900 campaigns in 2018, activist hedge funds represent "the activist" in the capital market and have a significant influence on corporate governance and strategy and even the ownership of companies. While finance scholars have focused on understanding what firms activist hedge funds target and the performance repercussions of their campaigns, management scholars have largely ignored this important constituent. Based on our extensive research on the context of hedge fund activism, we here provide a research agenda that articulates the opportunities for management scholars to conduct investigations into this important phenomenon. By shedding light on the dynamics of hedge fund activism, management scholars have the opportunity to provide greater clarity as to whether these activists are shareholder champions or if they undermine the long-term strategic health of companies. [ABSTRACT FROM AUTHOR]

The main problem of the current research is the absence of a suitable measure to measure the information asymmetry between managers who forecast profits and statistical analysts who forecast profits through statistical methods. The lack of a suitable criterion for measuring information asymmetry between managers who forecast earnings and statistical analysts who forecast earnings through statistical methods is the main problem of the present study. The present study aims to provide a model of information asymmetry with emphasis on the role of financial and managerial criteria; The present research is a qualitative and quantitative research (mixed method) which is based on the purpose of applied research. In order to prepare and formulate theoretical bases for reviewing research records, the library method is used, and also for collecting information in order to measure and identify indicators and modeling, the field method is used. To analyze the data, first after identifying the dimensions and variables of financial and managerial criteria of information symmetry, to eliminate irrelevant factors and classify them with the help of factor analysis, this work was done and 5 main dimensions were identified, which are: Corporate profit forecast is 2-corporate governance, 3- capital market, 4- return on capital, 5- managerial characteristics of the company. [ABSTRACT FROM AUTHOR]

providing a model for better identifying the pattern of exchange rate effects on the capital market and forecast the next one and two years of the Iranian capital market is The purpose of this study. In this regard, using 4 specification criteria (Maximum likelihood, Akaik, Schwartz and Hannan Quinn) we compare the fitness of two-regime Markov switching Model(2R-MSM) with three-regime Markov switching model(3R-MSM) relating to exchange rate fluctuations and the relationship between exchange rate fluctuations and capital market. Afterward we forecast the regime for relationship of exchange rate and capital market. results show in recognizing the pattern of exchange rate effects on the capital market, 3R-MSM outperforms 2R-MSM. According to the research findings, if the foreign exchange market fluctuates severely, an increase in the exchange rate will certainly increase capital market return, but when foreign exchange market is almost stable, the effect of this variable on the capital market can be positive or negative. According to the estimated probabilities, in the coming years we are expected to see a positive effect of the exchange rate on the capital market in a low volatility environment.

The economic and financial state of an emerging European country is undeniably closely related to the evolution and mechanisms that engage the European Union markets. The objective of this paper is to analyze in parallel the macroeconomic and capital market evolution of the Czech Republic, in the context of integration at European level, in order to highlight these connections and compare the path of these indicators with those of other emerging European countries. This paper studies the contagion of emerging markets to events that create inflections of markets at international level, as well as the correlations between the stock market and macroeconomic indices, in order to highlight those factors that lead to a direct influence of the macroeconomic and stock market environment. Through a descriptive analysis of the most relevant capital market indicators and macroeconomics, the study empirically addresses the evolution of the Prague stock exchange in parallel with the economic condition of the Czech Republic, finding similarities and differences in the behavior of these indices. For this analysis, the following indicators were selected: the total value of the traded shares, the number of domestic companies listed on the stock exchange, GDP per Capita, the annual evolution of GDP, the consumer price index, foreign direct investments, net inflows, as well as the current account balance. The study may represent a starting point in a broader analysis of the correlations of the economic and financial mechanisms that are based on the phenomenon of globalization, leading to the determination of common factors that affect the emerging markets in similar stages of development.

In the study, the impact of five macroeconomic factors on the capital market of the Republic of Serbia was explored. The focus was on factors that have been identified as significant for the development of the capital market but with differing opinions regarding their direction of influence. Specifically, the focus was on GDP, inflation, money supply, interest rate, and exchange rate. The research results indicate that the Belex15 index does not show long-term cointegration with GDP, IPC (inflation), and M3 (money supply). However, there is a significant influence of previous interest rate values and the exchange rate on the capital market of the Republic of Serbia. More precisely, there is a positive impact on interest rates and a negative impact on the exchange rate.

We are witnessing the transformation of the financial instruments industry and the processes taking place in the capital market, which have initiated a new trend in securities business. The contemporary progress of the global digital securities market is characterized by interactions between rapid technological innovations, changes in investor habits and competition among technology giants. The research subject is supported by the fact that digital securities offering becomes a profitable business model available on blockchain platform, making securities the most interesting financial instruments in the 21st century. The aim of the research is to overview characteristics of digital financial instruments as a consequence of the difference in territorial areas and legislation, as well as how this affects the potential and challenges of development in the capital market. Description method, analysis and synthesis technique, as well as the documents content analysis in the relevant area, were used for the purposes of the research. The result of the research confirms further development of digital securities in a very challenging environment and resources mobilization through alternative funding methods.

Copyright of Contemporary Accounting Research is the property of Canadian Academic Accounting Association and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Contemporary Accounting Research is the property of Canadian Academic Accounting Association and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The objective of this study was to examine the implications of financial inclusion on capital market liquidity in Nigeria. Therefore, we applied Vector Autoregression (VAR) technique to the analysis of the quarterly time series data obtained from Central Bank of Nigeria’s statistical bulletin and World Development Indicators for the period, 2008Q1 to 2018Q4. Findings of this study reveal that deposit penetration, bank penetration and credit penetration have positive but non-significant impact on stock market turnover ratio in Nigeria. Furthermore, unlike deposit penetration which exerts negative and non-significant influence on the value of shares traded ratio; bank penetration and credit penetration have positive but non-significant impact on the value of shares traded ratio in Nigeria. The study posits that financial inclusion exerts no significant influence/implications on stock market liquidity in Nigeria with a very negligible variation in the latter (stock market liquidity) explained by the former (financial inclusion). It is therefore recommended that accounts and bank penetrations should be re-engineered towards their translations to high volume and value of capital market transactions rather than mere financial penetration without any capital market implications in Nigeria.

We analyze volatility contagion between the U.S. and Chinese stock markets and international capital markets. The volatility is modeled using: GARCH, TARCH, EGARCH, APARCH, IGARCH, FIGARCH, ACGARCH and GAS models under Gaussian, GED and t-Student distributions. 21,000 intraday observations of thirteen markets from January/1st to June/25th 2020 are employed. Once volatility is modeled, the incidence of Chinese and American markets on the rest of the bourses is tested employing Vector Autoregressive Markov Switching Models. Evidence confirms incidence of the Chinese and American capital markets volatility in other markets volatility; common breakpoints and Intermarket incidence in high volatility periods stand out. [ABSTRACT FROM AUTHOR]

The impact generated by the accelerated development of NFT's creates a series of risks and legal problems, among which the legal, the impact on intellectual property, the protection of the purchasers of this type of tokens, fraud prevention and the possible impact of NFT's on financial markets are the most important. The purpose of this document is to analyze whether the regulatory framework of the securities market is applicable to NFT's based on the following assumptions: i) NFT's, understood individually as a digital representation, cannot be considered as securities; ii) in States where the definition of securities includes the concept of "investment contract", NFT's could be considered as securities, as long as they meet the requirements of the Howey Test; iii) in States where there is no definition of investment contracts, NFT's could be considered as securities, provided that they meet the requirements for such purpose--the existence of a negotiable right, issued in mass or in series within a public offering of securities, and that its purpose is to obtain resources from the public by way of investment--; and iv) that the recognition of NFT's as securities would lead to the application of regulatory frameworks of the capital market in matters such as registration before the financial authorities, provision of information and investor protection schemes. This text will describe the origin and current scenario of NFT's. Likewise, the different positions of supervisory and regulatory authorities at a global level will be analyzed with respect to these tokens; and, finally, some reflections will be made from the point of view of securities market regulation with respect to the aforementioned non-fungible tokens. [ABSTRACT FROM AUTHOR]

In recent years, uptier transactions have emerged as a novel way for distressed companies to restructure their debt obligations, resulting in unforeseen and inequitable outcomes for investors in corporate debt. Uptier transactions depend on provisions in credit agreements that permit debtholders with a majority stake in a class of debt to make decisions on behalf of all debtholders. Distressed companies take advantage of these provisions by colluding with a majority of debtholders to shift economic value from the remaining debtholders to themselves. As this Comment demonstrates, these transactions are likely to be value destructive and present an issue for capital markets. Unfortunately, the contractual solutions available to debtholders to prevent uptier transactions either are insufficient or impose substantial costs on parties. Uptier transactions may be a recent innovation in restructuring, but they are an instance of investor opportunism that is present whenever there is common ownership in property--those with control over common property can exercise that control in a way that benefits themselves to the detriment of other owners. Corporate law has resolved this issue in the equity context by imposing a fiduciary duty of loyalty on controlling shareholders. This Comment proposes treating debtholder control over debt covenants as akin to the control that large shareholders wield over corporations by imposing a waivable fiduciary duty of loyalty on controlling debtholders. The controlling shareholder doctrine in Delaware corporate law provides a useful starting point to consider how courts could enforce a controlling debtholder fiduciary duty in a way that would provide adequate judicial oversight over the most concerning transactions while limiting disruption to productive transactions. [ABSTRACT FROM AUTHOR]

Each company carries out its activities with different financial resources. Their use then affects the cost of equity and profitability of investments, which determines the possibility to compete in the capital market. Thus, this study is provided in order to define the financing policy with a proper capital structure that is able to minimize the cost of equity of the company in order to improve its financial competitiveness. The research focuses on Ukrainian food processing companies in the period 2013-2020. The cost of equity is calculated using the modified CAPM model and the methodology of Aswath Damoradan. The US Treasury bond rate as the risk-free rate, equity risk premium, and unlevered β-coefficient for food processing companies in emerging markets were taken from his databases. The leveraged β-coefficient was determined, considering the interest-bearing liabilities and the trade payable of the companies analysed. The cost of equity and its weighted cost were calculated within variants of the conservative, moderate, and aggressive financing policies. The results indicate that the lowest cost of equity occurs in the variants of conservative, moderate, and super-aggressive financing policies based on the financial independence of the company. Conversely, the lowest weighted cost of equity is identified for the aggressive and super-aggressive financing policies with negligible equity but significant use of non-interestbearing debt. The link between the cost of equity (its weighted cost) and the use of debt is rather weak in the sample of firms examined. Although the relation is direct for the cost of equity, the correlation coefficients show an inverse relationship for its weighted cost. This confirms that the choice of an appropriate variant of financing policy can lead to minimising the cost of equity and increasing the financial competitiveness of the firm. [ABSTRACT FROM AUTHOR]

This paper aims to identify macroeconomic factors that influence IPO implementation in selected Central and Eastern European capital markets. Survey based research has been conducted within a sample of non-financial companies operating in the Czech Republic, Croatia, Hungary, Poland, and Romania. The results suggest that favorable macroeconomic conditions such as GDP growth, low interest rates or positive development of local capital markets promote companies´ interest in IPO implementation. [ABSTRACT FROM AUTHOR]

Purpose: This paper is a continuation of research in the series that examines the weak form of the efficient capital markets theorem in Southeast European transitioning economies. Model modifications are based on learnings through the previously established inapplicability of foreign exchange metrics. At the same time, the model is being expanded by incorporating new research markets, extending the time coverage to the longest duration to date, between 2005 and 2021, to cover economic bust and recovery periods and research inherent improvements in the capital market context, and adding new variables to provide more sturdiness and conclusiveness. Methodology: The paper applies the panel pooled mean group estimator by aggregating cross-country data. By using level series prime data instead of differentials, this method enables efficient use of information and resolves at best the identified market shallowness. Results: The statistical results of empirical research infer the inefficiency of the investigated markets with greater robustness and supplementary new information revealing more powerful corrective investor and policy behavior in collectively more mature markets. Conclusions: The findings firmly reiterate subpar capital markets performance in a prolonged and more comprehensive environment. The recommendations conclusively emphasize the importance of structural reforms to support sustainability through elementary setup drivers, such as transparency, governance, judiciary productivity, and policy support, inter alia. [ABSTRACT FROM AUTHOR]

This Article focuses on capital market efficiency as an often-downplayed legal rationale for mandating corporate climate disclosure, and explores it alongside the notion of investor demand, which has assumed a prominent and, increasingly, contested role in debates on climate disclosure. Because market efficiency (encompassing both securities price accuracy and overall capital market allocative efficiency) is generally unobservable, many commentators have instead emphasized the highly visible investor demand for climate-related disclosure as evidenced by shareholder proposals, voting behavior, stewardship policies, and public statements. Unfortunately, investor demand can be disputed, sometimes fairly but most often unfairly, because investor preferences are heterogeneous, dynamic, and difficult to aggregate. This Article argues that while investor demand can be a helpful datapoint, a proper and sufficient legal justification for mandating climate-related disclosure lies in the need to ensure that firms' securities prices accurately reflect relevant information, which, in turn, will help maintain the overall integrity of the capital markets. This argument is supported by the statutory text, legislative history, Securities and Exchange Commission ("SEC") rulemaking practice, and judicial doctrine. In short, the role of corporate climate disclosure is "market-essential" and need not hinge on evidence of investor demand. The Article's analysis has implications for ongoing debates about regulatory efforts on corporate climate disclosure, including the propriety of the SEC's climate disclosure project, the viability of an "investor-optional" approach to disclosure, and objections based on "major questions" theories. Indeed, once it becomes clear that the SEC's disclosure rule is about basic market efficiency -- and not about "regulating climate change" -- such objections begin to fall away. More broadly, the Article also highlights the enduring importance of market efficiency as an objective justification for mandatory disclosure in an era of highly visible and sometimes controversial stewardship by asset managers and other investors. [ABSTRACT FROM AUTHOR]

"ALL THE LIGHT YOU SEE FROM THE PAST." It is a phrase of a sign installed in several places around the world, including the waterfront in Georgetown, Washington, D.C., United States. This means that by the time it reaches people's eyes, everything they are seeing is technically already in the past. From the perspective of life or art, the phrase is indeed a beautiful and profound expression, but if you put it into the capital market, it illustrates that "the capital markets are not fair." This is because, in current capital markets, there is information asymmetry between fast traders and slow traders, and ordinary investors are always exposed to adverse selection when new information flows into the markets. Unfortunately, when fair disclosure was introduced, several facts, such as different trading conditions between investors the discrepancy "timing" of accessing the information, the different "speeds" of a network, and the varying "distances" to information sources or order book (server), couldn't be considered due to the social and market environment. Accordingly, instead of enforcing issued corporations to disclose material nonpublic information to all investors simultaneously, the securities regulation system must allow a chance to avoid information asymmetry by allowing corporations to sell their information in advance of fair disclosure. However, this work is not easy because the fair disclosure system and insider trading regulation require simultaneous dissemination of information, and this principle is treated as a "Sacred Tenet." Therefore, to level the playing field in a substantive meaning, not only those factors must be considered, but also a plan for harmonizing the current legal systems and new legal systems for protecting ordinary investors would necessarily be prepared. From this background, the author introduces factors generating information asymmetry, discusses the necessity of a new legal system, and, based on a new insider trading theory "Discretion of Corporation Theory," examines a plan for rebuilding rules treating information asymmetry to level the playing field in substantive meaning. [ABSTRACT FROM AUTHOR]