Regulatory transparency and the alignment of private and public enforcement: Evidence from the public disclosure of SEC comment letters

• 成果类型: Article
• 署名作者: Hutton, Amy; Shu, Susan; Zheng, Xin
• 署名单位: Boston College; University of British Columbia
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2021.07.011
• 发表日期: 2022
• 页码: 297-321
• 关键词: Sec comment letters; SHAREHOLDER LITIGATION; Regulatory transparency; ENFORCEMENT

摘要

Does enhanced regulatory transparency facilitate alignment of private and public enforcement? Utilizing the SEC's 2004 decision to publicly disclose its comment letters, we explore the actions of the SEC and shareholder litigants. We find the two parties converge more on enforcement targets after the public disclosure. The increased alignment is attributable to public scrutiny of SEC oversight enhancing regulator incentives and reducing regulatory capture, and to shareholder plaintiffs gaining information previously accessible only by regulators, enabling litigants to identify cases with merit. These findings suggest regulatory transparency enhances the complementarity of public and private enforcement, potentially improving enforcement outcomes. (c) 2021 Elsevier B.V. All rights reserved.