KTH/CESIS Working Paper Series in Economics and Institutions of Innovation
Public Enforcement of Securities Market Rules: Resource-based evidence from the Securities Exchange Commission
(), Razvan Pascalau
() and Christian Thomann
Abstract: We empirically investigate whether increases in the U.S.
Securities and Exchange Commissionís (SEC) budget have an effect on firmsí
compliance behavior with securities market rules. Our study uses a dataset
on the SECís resources and its enforcement actions over a period beginning
shortly after the Second World War and ending in 2010. We find that
increases in the SECís resources both improve compliance and lead to an
increased activity level of the SEC. The higher level of compliance is
reflected by a decrease in the numbers of enforcement cases. The increased
activity level is reflected by a surge in the number of inves-tigations
conducted by the SEC.
Keywords: Public enforcement; securities laws; compliance; Securities and Exchange Com-mission; budget; (follow links to similar papers)
JEL-Codes: D21; G14; G18; K22; (follow links to similar papers)
38 pages, May 20, 2014
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