In the last decade, a number of record setting frauds were discovered. To defend shareholder value, Congress and regulatory agencies responded with more market regulation to force better corporate governance. With that being said, please answer the following questions:

1. Do you think financial regulations increase or destroy corporate values? Back up your statements with evidence and give examples to illustrate your position.

2. How efficient do you think the financial markets are today? Do you believe in the EMH? Do you have any alternative theories on efficient markets?

Please answer both thoroughly.