On the SEC's 2010 enforcement cooperation program

Andrew J. Leone, Edward Xuejun Li and Michelle Liu

Journal of Accounting and Economics, 2021, vol. 71, issue 1

Abstract: This study examines changes in SEC enforcement and firm cooperation after the SEC introduced its new cooperation program in 2010. While previous research shows that the SEC penalized cooperative firms prior to 2010, our results suggest that after that year, it rewarded cooperation, especially good faith actions. We also find that after 2010, the SEC increased mentions of cooperation in public speeches and publicized more details about firm cooperative activities in AAERs. Finally, we find some evidence that misconduct firms increased good faith cooperation after the SEC revised its cooperation program in 2010. Our findings suggest that having a more explicit leniency program improves its effectiveness.

Keywords: SEC enforcement; Cooperation; Leniency; Prosecutorial discretion; Restatement (search for similar items in EconPapers)
JEL-codes: G18 G38 K42 M41 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jaecon:v:71:y:2021:i:1:s0165410120300574

DOI: 10.1016/j.jacceco.2020.101355

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