Very interesting academic study on the limits of government regulation and how activist short sellers can motivate corporate ethical behavior.
Note the new buzzwords for activist short selling including “monetized self-regulation” and “inverted moral markets” or IMM.
To provide insight on internally driven controls, this article examines how a newer form of monetized self-regulation, referred to as inverted moral markets, might be leveraged to motivate corporate ethical behavior. Inverted moral market (IMM) operations target firms suspected of unethical action, providing a type of market whistleblowing.
Download here – Inverted Moral Markets IMMs as market regulators