Professor Andrew Karolyi, Faculty Co-Director of Johnson’s Emerging Markets Institute, says a June 2010 decision by the United States Supreme Court has driven a major wedge between U.S. and foreign securities markets, increasing costs to U.S. investors seeking foreign exposure and impeding the flow of U.S. capital abroad. Karolyi has been studying the aftershocks of Morrison v. National Australia Bank, in which the Court held that only securities purchased on U.S. exchanges or on U.S. soil (if traded over the counter) are subject to the fraud protection provisions of Section 10(b) of the Securities Act.

Professor Andrew Karolyi and the Morrison Decision: Measuring the Value of U.S. Securities Law to Investors


Andrew Karolyi, Faculty co-director of EMI

“Much of my research focuses on cross-border capital flows, especially in emerging markets which are fast-growing, capital-hungry and unfortunately hampered by fragile markets, weak regulatory institutions, and inadequate laws.”

- Andrew Karolyi, Faculty co-director of EMI