Research Details

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.

Type

Article

Author(s)

Andrew J. Leone, Edward Li, Michelle Liu

Date Published

2021

Citations

Leone, Andrew J., Edward Li, and Michelle Liu. 2021. On the SEC's Enforcement Cooperation Program: A Regime Shift after 2010. Journal of Accounting and Economics.(1)