The functions of securities law: An expert survey of legislative intent in Poland

Under the conventional view, securities law is intended to protect ordinary (retail) investors. However, some scholars from the school of Law & Economics (L&E), guided by considerations of economic efficiency, claim instead that the principal function of securities law is to reduce transaction costs and risk to professionals. This paper examines those claims empirically. Our research design blends content analysis methods with expert survey techniques to arrive at numerical assessments of determinants of Polish securities law. We find that the L&E view is supported by our data very weakly, only insofar as consumer protection is not the main driver of securities law. The veracity of this claim appears to be time-dependent. We do not find sufficient support for the main components of the L&E view, i.e., that securities law is meant to reduce transaction costs and risk to professionals. However, our data does not refute the L&E hypotheses, and, therefore, we consider them to be an open question. We phrase our conclusions cautiously because of the relatively small number of experts surveyed and of statutory sources of securities law in Poland.