Tag Archives: Regulation

Clarification or Confusion: A Textual Analysis of ASC 842 Lease Transition Disclosures

By | September 5, 2022

In our recent paper, we study the textual meaning of the financial statement transition disclosures in firms’ filings with the Securities and Exchange Commission (SEC) explaining the likely effects of the adoption of Accounting Standards Codification (ASC) 842 on leases. Under President Franklin Delano Roosevelt, Congress established that the SEC’s backbone be based on a sufficient… Read More »

Williamson v. Tucker – A 2022 Interpretation From Colorado

By | August 29, 2022

Williamson v. Tucker, 645 F.2d 404 (5th Cir. 1981) (referred to herein as “Williamson”) stands for the proposition that owner’s interests in joint ventures organized as general partnerships where the general partners participate in the management of the assets involved should not be treated as “securities” for regulation under federal and state law. Many courts… Read More »

When Loans Are Involved in Lawsuits: How Consumer Litigation Funding Affects Lawsuits in the U.S. 

By | August 26, 2022

The U.S. is one of the world’s most litigious countries. According to a 2010 New York Times article, “we spend about 2.2% of gross domestic product, roughly $310 billion a year, or about $1,000 for each person in the country on tort litigation, much higher than any other country.” The defendant of a tort claim… Read More »

EDGAR Implementation, Unionization, and Strategic Disclosure 

By | August 19, 2022

Do companies adapt their financial disclosures in accordance with the ease by which their stakeholders can access this information? To facilitate submission and dissemination of corporate filings, the Securities and Exchange Commission (SEC) Release No. 33-6977 from February 1993 mandated all SEC-registered firms to electronically submit all regulatory filings to the Electronic Data Gathering, Analysis,… Read More »

Attorneys and Compliance Personnel Seeking to Avail Of SEC Whistleblower Awards: Proceed With Caution

By | August 17, 2022

The U.S. Securities and Exchange Commission (SEC) operates an enormously successful whistleblower award program. In just ten years, it has paid out over $1.3 billion to individuals who have helped the SEC prosecute hundreds of securities violations. Most award recipients are regular employees who report their employer, but a small portion are compliance personnel. Compliance… Read More »

The Effect of Financial Reporting on Strategic Investments: Evidence from Purchase Obligations 

By | August 11, 2022

Firms make investments to increase their future profits because they help reduce production costs, increase capacity, or upgrade their products or services. However, firms do not always make investments to improve production efficiency or customer demand. They often make investments to strategically influence competitors’ behavior. Due to their costly-to-reverse and time-bound nature, investments signal credible… Read More »

Can Increased Competition Among Audit Firms Harm Audit Quality? 

By | July 28, 2022

Understanding how audit market competition affects audit quality is of significant interest to academics, practitioners, and regulators, with important capital market and policy implications. Regulators around the world have expressed concerns that companies have too few choices in the audit market and believe that the lack of choice is resulting in low competition. As a… Read More »

How To Resolve A Dispute Involving A DAO

By | July 21, 2022

Since early May 2022, a Decentralized Autonomous Organization (DAO) known as “bZx DAO” has been facing a lawsuit in California. The plaintiffs hold the defendants liable for their losses following a hack of the protocol that was managed by the DAO. This case is reminiscent of the first DAO known as “The DAO”, which was… Read More »

The End of the Crypto-Diversification Myth 

By | July 19, 2022

In the first half of 2022, Bitcoin lost over half its value, and the correlation with the stock market jumped to over 60%. These patterns are both remarkable and hard to explain. Why do monetary policy, the economy, or wars matter for the value of cryptocurrencies? Why do cryptocurrencies behave like tech stocks?  From an… Read More »