Dissertation/Thesis Abstract

Essays on Financial Regulation
by Alsabah, Khaled, Ph.D., University of Colorado at Boulder, 2020, 104; 28028637
Abstract (Summary)

In the first chapter we analyze the long-term effects of accelerating the 10-K deadline by 15 days. Using a regression discontinuity design, we find that accelerated firms are more likely to issue a restatement when their 10-K deadline is binding. 10-Ks submitted by accelerated firms have a larger market reaction. Accelerated firms have lower information asymmetry, which is consistent with our finding that EDGAR ling search traffic is lower for the accelerated filers.

In the second chapter we examine capital structure implications of newly public firms' availing themselves of regulatory exemptions. Title I of the Jumpstart Our Business Startups (JOBS) Act provides newly public firms broad-scale regulatory relief but limits the benefits to a certain subset of firms named "Emerging Growth Companies (EGCs)." One of the EGC criteria is based on a $700 million public oat threshold. We find evidence that firms appear to bunch up their public float at IPO issuances below the $700 million threshold and repurchase their shares after the issuances to be eligible for the EGC status. Firms staying below the threshold are more likely to substitute public equity with debt. We further find that the leverage effect persists over time (the leverage ratchet effect) even when EGCs lose their status.

Indexing (document details)
Advisor: Moon, Katie
Commitee: Garcia, Diego, Ertimur, Yonca, Davies, Shaun, Bernstein, Asaf
School: University of Colorado at Boulder
Department: Business
School Location: United States -- Colorado
Source: DAI-A 82/3(E), Dissertation Abstracts International
Subjects: Finance, Public policy
Keywords: Financial regulation
Publication Number: 28028637
ISBN: 9798664779516
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