Economic consequences of SEC disclosure regulation: evidence from the OTC bulletin board

• 成果类型: Article
• 署名作者: Bushee, BJ; Leuz, C
• 署名单位: University of Pennsylvania
• 刊物名称: JOURNAL OF ACCOUNTING & ECONOMICS
• ISSN/ISSBN: 0165-4101
• DOI: 10.1016/j.jacceco.2004.04.002
• 发表日期: 2005
• 关键词: MANDATORY DISCLOSURE; capital-markets; STOCK; INFORMATION; FIRMS

摘要

This paper examines the economic consequences of a regulatory change mandating OTCBB firms to comply with reporting requirements tinder the 1934 Securities Exchange Act. This change substantially increases mandated disclosures for firms previously not filing with the SEC. We document that the imposition of disclosure requirements results in significant costs for smaller firms, forcing them off the OTCBB. SEC regulation also has significant benefits. Firms previously filing with the SEC experience positive stock returns and permanent increases in liquidity, suggesting positive externalities from disclosure regulation. Newly Compliant firms exhibit significant increases in liquidity consistent with improved disclosure reducing information asymmetry. (c) 2004 Elsevier B.V. All rights reserved.