SEC's Enforcement Actions and Its Effectiveness in an Efficient Market
Author: Mahmoud Mehrdad Nourayi
Publisher:
Published: 1989
Total Pages: 260
ISBN-13:
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Author: Mahmoud Mehrdad Nourayi
Publisher:
Published: 1989
Total Pages: 260
ISBN-13:
DOWNLOAD EBOOKAuthor: United States. Congress. Senate. Committee on Banking, Housing, and Urban Affairs. Subcommittee on Securities, Insurance, and Investment
Publisher:
Published: 2009
Total Pages: 96
ISBN-13:
DOWNLOAD EBOOKAuthor: United States. Securities and Exchange Commission. Division of Enforcement
Publisher:
Published: 2008
Total Pages: 144
ISBN-13:
DOWNLOAD EBOOKAuthor: Roger Nelson Silvers
Publisher:
Published: 2012
Total Pages: 68
ISBN-13:
DOWNLOAD EBOOKThis study provides a test of the market valuation impact of Securities and Exchange Commission (SEC) enforcement actions for foreign firms. I examine the SEC enforcement policy towards foreign firms under its jurisdiction. In contrast to Siegel (2005) who examines earlier years, I find that the SEC's current (post-2002) enforcement intensity is considerable and has increased dramatically by comparison. I construct a novel test using the burgeoning series SEC enforcement events as changes to the legal environment that circumvents the issues associated with firm-level exchange-listing events (e.g. self-selection and simultaneous changes to firm traits). The tests focus on stock returns of foreign firms not targeted by the SEC during event windows surrounding SEC announcements of enforcements against foreign firms. This isolates the effect of a changing enforcement environment. I find that when the SEC takes action against a foreign firm, non-target foreign firms experience positive stock returns. Returns are amplified for firms from weaker home legal environments, suggesting that the returns are due to a perceived increase in SEC scrutiny. Finally, consistent with the market adjusting to the new enforcement regime, the magnitude of non-target firm returns declines with each sequential SEC enforcement action. The overall results provide evidence that SEC oversight plays a significant role in increasing the value of foreign firms, which supports the legal bonding hypothesis discussed in prior literature.
Author: Robert Khuzami
Publisher: DIANE Publishing
Published: 2010-11
Total Pages: 20
ISBN-13: 143793367X
DOWNLOAD EBOOKContents: (1) The extent to which the resource shortages and enforcement policies of the SEC in recent years have hampered aggressive enforcement of securities laws; (2) What changes are needed to ensure that the SEC does not once again fall behind on its enforcement responsibilities; and (3) What changes Congress should consider to ensure adequate resources and authority for the SEC to fulfill its vital enforcement role. Khuzami outlines SEC¿s plan for addressing the challenges that we face. He also discusses some of the changes that SEC Chairman Mary Schapiro has instituted that have already helped SEC¿s program. Additional resources would enhance SEC¿s ability to keep pace with ever-changing developments in a dynamic marketplace.
Author: Helen M. Roybark
Publisher:
Published: 2015
Total Pages: 55
ISBN-13:
DOWNLOAD EBOOKEfficient capital markets and public confidence require honest actors. This is even more important in today's global marketplace. Unfair business practices such as bribery of foreign officials and maintaining and reporting of inaccurate books and records create an unlevel playing field for honest businesses, reduce market efficiency, undermine public confidence, and leads to increased regulation. Congress enacted the Foreign Corrupt Practices Act (FCPA) in 1977 in response to such unfair practices. The purpose of this study adds to the literature on unfair business practices by analyzing 98 FCPA enforcement actions settled by the U.S. Securities and Exchange Commission (SEC) and parallel enforcement actions settled by the U.S. Department of Justice (DOJ) during 2006-2013. Total judgments settled by the SEC and the DOJ during 2006-2013 were $1.882 billion and $2.475 billion, respectively.
Author: Kenneth Lehn
Publisher: Irwin Professional Publishing
Published: 1992
Total Pages: 558
ISBN-13:
DOWNLOAD EBOOKNew developments in securities markets, particularly in the areas of technology, financial products, and foreign securities markets, are challenging the Securities and Exchange Commission to reconsider its regulatory policies. This book offers detailed prescriptions for effective regulation from experienced regulators and noted scholars in the field. A definitive collection that illustrates how research and expert opinion can help the SEC frame issues and establish objective criteria for evaluating the effectiveness of its policies.
Author: Mary L. Schapiro
Publisher: DIANE Publishing
Published: 2009-12
Total Pages: 64
ISBN-13: 1437917666
DOWNLOAD EBOOKThe SEC Div. of Enforcement (Enforcement) plays a key role in meeting the agency's mission to protect investors and maintain fair and orderly markets. In recent years, Enforcement has brought cases yielding record civil penalties, but questions have been raised about its capacity to manage its resources and fulfill its law enforcement and investor protection responsibilities. This report evaluates: (1) SEC's progress toward implementing previous recommendations; (2) the extent to which Enforcement has an appropriate mix of resources dedicated to achieving its objectives; and (3) the adoption, implementation, and effects of recent penalty policies. Includes recommendations. Charts and tables.
Author: United States. Congress. House. Committee on Financial Services. Subcommittee on Capital Markets and Government Sponsored Enterprises
Publisher:
Published: 2015
Total Pages: 64
ISBN-13:
DOWNLOAD EBOOKAuthor: Yaz Gulnur Muradoglu
Publisher:
Published: 2008
Total Pages: 33
ISBN-13:
DOWNLOAD EBOOKThis paper examines the effect of the announcement of the Securities and Exchange Commission's (SEC) legal enforcement actions. The results indicate that SEC lawsuits have a negative effect on share price. This is no surprise, but the real interest lies in understanding what characteristics of the legal enforcement process have greatest effects on firm value. Findings indicate that firms which communicate with the market regarding their enforcement cases receive more favorable treatment than those that do not. The results also show that the markets are able to differentiate between minor and major violations, with fraud and insider trading cases returning greater negative results than procedural violations and improper accounting. Case outcomes also elicit differential reactions; pending and partially settled cases have larger short-term negative returns than cases with known outcomes of similar nature, perhaps due to high levels of uncertainty. The focus is on recent history in an attempt to reflect accurately the current market climate.