Tag Archives: SEC

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 »

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 »

Changes in Risk Factor Disclosures and the Variance Risk Premium 

By | June 14, 2022

Since 2005, the Securities and Exchange Commission (SEC) mandates that all publicly-traded firms inform investors about material risks that may impact future performance. These are referred to as risk factor disclosures, which are discussed within Item 1A of 10-K filings. These risk disclosures have been criticized as lengthy and boilerplate (IRRC 2016; SEC 2016); it… Read More »

Regulator’s Use of Corporate Monitors to Remediate Financial Misconduct 

By | June 8, 2022

Regulators such as the Securities and Exchange Commission (SEC) and Department of Justice (DOJ) are allowed to seek any remedy that is necessary to protect investors following violations of securities law. One remedy increasingly being used is the requirement that violating firms hire a corporate monitor at their own expense, who is charged with supervising… Read More »

A Critical Analysis of the SEC’s Reaction to Crypto Lending 

By | May 20, 2022

For the past several years, investors around the world who are interested in owning and holding certain cryptoassets for the long term have had the opportunity to deposit their assets with various companies and protocols and earn interest. One such company is CoinLoan, based in Europe and regulated under applicable EU financial law. It offers… Read More »

Third-Party Litigation Finance and Public Capital Markets: The Case of the Muddy Waters Short Attack on Burford Capital

By | May 13, 2022

Imagine a company that invests in a portfolio of long-term financial assets. This company’s asset portfolio is, relative to the asset management industry, highly concentrated—a circumstance which naturally heightens the appetite of the company’s own investors to know more details of the assets in the portfolio. The company operates in an adolescent industry, and neither… Read More »

Secondary markets and the power of the enforcement of insider trading laws

By | April 28, 2022

To facilitate small and high growth firms in need of finance, the London Stock Exchange (LSE) introduced a secondary market, the Alternative Investment Market (AIM), in 1995. The AIM is a lightly regulated market, with minimum eligibility criteria and ongoing obligations, which was initially considered to be a stepping-stone to the traditionally regulated Main Market… Read More »

The Media Goes Where They’re Needed: The Relation between Firms’ Investor Base and Media Coverage

By | April 27, 2022

The financial media provides information to investors by monitoring firms for malfeasance, such as fraud and excessive CEO pay (Miller, 2006; Core, Guay, and Larcker, 2008). The media also helps investors monitor more mundane corporate activities, such as periodic earnings announcements. However, it is unclear why certain firms get extensive media coverage, along with the resulting benefits,… Read More »

Of standards and technology: ISDA and technological change in the OTC derivatives market

By | April 25, 2022

There is no lack of interest in new technologies such as distributed ledger technology (DLT) or smart contract technology (SCT). For enthusiasts, DLT and SCT are full of promise. Thanks to technology, the future is meant to be frictionless and more decentralized. However, interest in the “plumbing” underneath, which is required to implement the vision… Read More »