Below, a continuation of our bibliography of thought-provoking articles on issues related to right-sizing regulation, staying private versus going public, and related topics:
The effects of removing barriers to equity issuance, Journal of Financial Economics, July 14, 2016. This article examines whether the relaxation of the eligibility requirements for use of a shelf registration statement, permitting smaller issuers to use a shelf registration statement, contributed to a decline in reliance by such companies on PIPE transactions for their follow-on capital-raising efforts.
Principles for Publicness, Florida Law Review, Omnig H. Dombalagian. This article considers the duties that "public" companies owe investors and considers a tiered regulatory framework for companies as companies mature.
The Law and Economics of Scaled Equity Market Regulation, The Journal of Corporation Law, Jeff Schwartz. This article reviews the concept of tiered regulation based on the size and age of companies using a marginal analysis model and concludes that size-based regulatory scaling is beneficial.
The Monitoring Role of the Media: Evidence from Earnings Management, Yangyang Chen, C.S. Agnes Cheng, Shuo Li, and Jingran Zhao, May 2017. This article looks at the effect of media coverage on earnings management. Media scrutiny serves to limit management of earnings in ways that favor insiders.
Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.
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