Public and Private Information: Firm Disclosure, SEC Letters, and the JOBS Act

IF 0.9 Q3 BUSINESS, FINANCE
Sumit Agarwal, Sudip Gupta, Ryan Israelsen
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引用次数: 0

Abstract

This paper examines the impact of the recently passed Jumpstart Our Business Startups (JOBS) Act on the behavior of market participants. Using the JOBS Act — which relaxed mandatory information disclosure requirements — as a natural experiment on firms’ choices of the mix of hard, accounting information and textual disclosures, we find that relative to a peer group of firms, initial public offering (IPO) firms reduce accounting disclosures and change textual disclosures. Because it allows a partial revelation of IPO quality, only textual disclosures affect underpricing. We also find that the Securities and Exchange Commission (SEC) changes its behavior post-JOBS Act in responding to draft registration statements. Specifically, the SEC’s comment letters to firms are more negative in tone, and more forceful in their recommendations, focusing on quantitative information. Finally, under the JOBS Act, investors place more emphasis on the information produced by the SEC when pricing the stock. Returns following public release of the letters vary by about 4% based on letter tone.

公共和私人信息:公司披露、SEC信函和JOBS法案
本文考察了最近通过的《启动创业公司法案》对市场参与者行为的影响。利用放宽强制性信息披露要求的JOBS法案,作为企业选择硬信息、会计信息和文本披露组合的自然实验,我们发现相对于同行公司,首次公开发行(IPO)公司减少了会计披露,改变了文本披露。因为它允许部分披露IPO的质量,只有文字披露才会影响低估。我们还发现,美国证券交易委员会(SEC)在回应注册声明草案时改变了其在jobs法案后的行为。具体来说,SEC给公司的意见信语气更为负面,建议也更加有力,重点放在量化信息上。最后,根据《就业法案》,投资者在为股票定价时更加重视SEC提供的信息。根据信件的语气,公开发布信件后的回报会有4%左右的差异。
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来源期刊
Quarterly Journal of Finance
Quarterly Journal of Finance BUSINESS, FINANCE-
CiteScore
1.10
自引率
0.00%
发文量
0
期刊介绍: The Quarterly Journal of Finance publishes high-quality papers in all areas of finance, including corporate finance, asset pricing, financial econometrics, international finance, macro-finance, behavioral finance, banking and financial intermediation, capital markets, risk management and insurance, derivatives, quantitative finance, corporate governance and compensation, investments and entrepreneurial finance.
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