Do Companies Redact Material Information from Confidential SEC Filings? Evidence from the FAST Act

ABSTRACT The Securities and Exchange Commission permits companies to redact proprietary information from material contract filings, so long as the redacted (1) would cause competitive harm if disclosed, (2) is legally immaterial. Because these joint criteria are inherently contradictory, we examine whether immaterial economically investors. We find that firms’ stock price discovery process significantly slower insider trading greater after file contracts compared nonredacted contracts. then impact of 2019 FAST Act, which reduced SEC’s oversight Companies more frequently (but not speed discovery) pronounced Act. Taken together, findings suggest at least some investors reducing SEC may be in investors’ best interests. JEL Classifications: M41.