Should Private Companies Have the Same SEC Disclosure Requirements as Public Companies? A Debate

Ludovic Phalippou and Gregory Brown

Journal of Applied Corporate Finance, 2022, vol. 34, issue 3, 82-87

Abstract: As with any important policy decision, the question of mandated disclosure for private equity must weigh the potential benefits against the costs of implementation. At the 2022 Private Equity Research Symposium hosted by Oxford University, Oxford's Ludovic Phalippou and UNC‐Chapel Hill's Gregory Brown debated the merits of greater mandated financial reporting for private companies. Phalippou's arguments in favor of more disclosure center on the potential lack of alignment between private equity fund general partners (GPs) and limited partners (LPs), which can distort the incentives of GPs to be transparent and honest with LPs. Brown's arguments against increasing mandated disclosure focus on the potentially large costs associated with substantially more reporting, especially for smaller companies. These costs could change the landscape of private investments in a way that reduces investment in innovative, high‐growth companies.

Date: 2022
References: Add references at CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1111/jacf.12519

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:jacrfn:v:34:y:2022:i:3:p:82-87

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=1078-1196

Access Statistics for this article

Journal of Applied Corporate Finance is currently edited by Donald H. Chew Jr.

More articles in Journal of Applied Corporate Finance from Morgan Stanley
Bibliographic data for series maintained by Wiley Content Delivery ().