How Do Competing Regulators Regulate Conflict of Interest (COI) Disclosure? Evidence from Fairness Opinion Providers’ COI Disclosures
We study how competing groups of regulators regulate the COI disclosure using the setting of the fairness opinion (“FO”) providers in mergers and acquisitions (“M&A”). In this setting, there are three types of regulators with cross-sectional variation in enforcement: the SEC, FINRA, and state courts. Though each group regulates the same disclosure, they all have authority over different regulatees: The SEC has authority over the managers who create the filings; FINRA has authority over the FO providers; and state courts have authority over the board of directors. We examine the effectiveness of each group’s enforcement and the effect of their interactions on COI disclosures. Our paper contributes to the literature on regulatory design for financial reporting disclosures, especially when the different regulatees need to coordinate information or when disclosures have negative implications.
This is an UNPAID research project.
Faculty Advisor
- Professor: Lisa Yao Liu
- Center/Lab:
Project Timeline
- Earliest starting date: 9/7/21
- End date: Flexible
Candidate requirements
- Skill sets: Interested in reading and able to read the financial statements. Having some basic understanding of the financial institutions
- Student eligibility: freshman, sophomore, junior, senior, master’s
- International students on F1 or J1 visa: eligible
- Academic Credit Possible: Yes