Regulatory clarity enhances investor confidence from "summary" of The Economics of Regulation: Principles and Institutions: Economic principles by Alfred Edward Kahn
One of the key components in creating an environment that is conducive to investment is regulatory clarity. When regulations are clear and well-defined, investors are better able to understand the rules of the game, which in turn enhances their confidence in making investment decisions. Investors are naturally risk-averse, and uncertainty in regulatory environments can create significant barriers to investment. When regulations are ambiguous or subject to interpretation, investors may be hesitant to commit their capital to a particular industry or market. The lack of clarity can lead to delays in investment decisions, as investors may seek additional information or legal advice to navigate the uncertain regulator...
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